‘Pensions Holiday’ finished Wednesday, 25 April 2012.
Published 7th May 2012, 4:21pm
The two-year suspension of pensions contributions for non-Caymanians ended on Wednesday 25 April 2012.
The ‘pensions holiday’, which was voluntary, was implemented by the Government for two primary purposes: to ease financial burdens on employers especially during a downturn caused by the global recession, and also to stimulate the labour market by providing payroll savings which could be applied to retaining employees or making other worthwhile business investments or expenditures.
The one-year suspension (“holiday”) for Caymanian employees ended in April 2011.
Non-Caymanian employees were able to participate in this ‘holiday’ through amendments that were made to the National Pensions Law (2010 Revision).
As of April, 2012, the National Pensions Office statistics show that 2,864 employees took advantage of this opportunity.
"With this expiry, participating non-Caymanian employees can expect to see their employers resume the pension deductions from their salary and the payment of the employers’ and employees’ pension contributions to their pension plans," Superintendent of Pensions Amy Wolliston explained.
These laws affect private sector employers, employees, and self-employed individuals. Employers are reminded that all staff, including Non-Caymanians, between the ages of 18 and 60, are required to participate in a pension plan and pay pension contributions from their first day of employment.
The only exceptions are Non-Caymanians who have not completed 9 months of continuous employment on the islands (not necessarily with the same employer), or those persons employed to do housework in private residences (domestic helpers).
Minister of Education, Training and Employment, Hon. Rolston Anglin, JP, stated, "In these tough economic times I am happy that the government was able to help our country by providing the pensions holiday to those companies and individuals who qualified. Pensions contributions are extremely important to an individual’s long-term savings for retirement. As the payments resume, we should all start thinking critically and strategically about our individual retirement plans."
For more details, refer to the National Pensions Law (2010 Revision),which is available on the www.gov.ky website under the ‘Features’ section; contact the pension plan provider; or the National Pensions Office, a division of the newly formed Department of Labour & Pensions, on 945-8960 or on the NPO website at www.npo.gov.ky.