Cayman is different from most other countries regarding pensions. The pension system is privately funded in Cayman, but Government-mandated. The Cayman Islands Monetary Authority is responsible for the regulation of pension plans and pension providers.
The Department of Labour and Pensions (Tel: (345) 945 8960) oversees the employer compliance of pensions in the Cayman Islands.
All employers in the Cayman Islands must provide pension plans for their employees— this is the law. Employees must contribute a minimum of five percent of their earnings to their pension plans. Pension providers in Cayman provide varied plans, so it is important discuss your pension benefits with your employer.
The Cayman Islands Government has set up its own arrangements to administer pension contributions to civil servants. See the Government Pensions section below for more information.
There have been recent changes to Cayman’s pension law and later on in this section Cayman Resident details 10 important provisions employers and employees in the Cayman Islands must know.
Here in Cayman, both employers and employees must contribute to a pension scheme. In May 2016, the Cayman Islands National Pensions (Amendment) Law, 2016 was passed with over 50 provisions revised. The National Pensions Law requires employers and employees to contribute an amount equivalent to 10% of an employee’s monthly salary into an approved pension scheme. The legislation requires employers to contribute at least 5% and employees up to 5% (together amounting to no less than 10%).
Cayman’s new pension law has become a hot topic since it was passed in the Legislative Assembly in 2016. While some provisions have some employees concerned; other provisions have been welcomed such as the increases to the pensionable age and pension earnings. Cayman Resident has what you need to know about these recent changes.