Cayman’s pension system differs from many other countries. Unlike government-funded pension systems elsewhere, pensions in the Cayman Islands are privately funded but government-mandated. This means contributions are invested through approved private pension providers, while strict rules are set and enforced by government authorities.
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Two key government bodies oversee pensions in the Cayman Islands:
Cayman Islands Monetary Authority (CIMA) regulates pension plans and licensed pension providers and the Department of Labour and Pensions (Tel: (345) 945 8960) oversees employer compliance with pension laws.
Employer Pension Requirements
Under the National Pensions Act, all employers in the Cayman Islands are legally required to provide pension plans for their employees. Employers are required to remit a total of 10% of an employee's monthly earnings (up to 5% contributed by the employee and at least 5% contributed by the employer). Contributions must be paid into an approved pension plan.
Tip: Pension plans vary greatly between providers so make sure to discuss your specific pension benefits with your employer.
Penalties for Non-Compliance
Employers who fail to comply with Cayman Islands pension laws face significant penalties:
- First offence Fine of up to CI$20,000 or up to two years' imprisonment, or both.
- Second offence Fine of up to CI$50,000 or up to three years' imprisonment, or both.
These penalties are designed to protect employees and ensure pension contributions are paid correctly and on time.
Private (Non-Government) Pensionskeyboard_arrow_right
The Cayman Islands is different from other jurisdictions when it comes to pensions. There are two pension sectors in Cayman, privately funded pension plans and Government funded pension plans for civil servants.
Registered Pension Providerskeyboard_arrow_right
Browse our comprehensive list of reputable Pension Providers in the Cayman Islands. They offer a range of plans to suit your needs and help your money work harder for you.
Read MorePensions for Civil Servants
The Cayman Islands Government has separate pension arrangements for
civil servants. These are administered directly by the government,
rather than private pension providers. For more details, refer to the Government Pensions section below.
Government Pensionskeyboard_arrow_right
Civil servants and other public sector employees in the Cayman Islands are members of the Public Service Pensions Plan (PSPP), which is administered by the Public Service Pensions Board (PSPB). The PSPP covers employees across 15 Cayman Islands Government ministries and portfolios, as well as 15 statutory authorities and government-owned companies, all of which actively participate in the plan. As the largest pension administrator in the Cayman Islands, the PSPB manages pension accounts for more than 11,000 members, including over 2,200 pensioners.
Read MoreCayman Islands Pension Regulationskeyboard_arrow_right
Find a list of rules and requirements regarding Cayman Islands pension laws.
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