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.
The Cayman Islands are 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 (see below for information on Government funded pension plans).
Civil servants and other public servants are members of the Public Service Pensions Plan (PSPP), which is administered by the Public Service Pensions Board (PSPB). This means that 15 Ministries and Portfolios of the Cayman Islands Government, along with 13 Statutory Authorities and Government Owned Companies are actively participating in the PSPP. As the largest pension administrator in the Cayman Islands, the PSPB oversees pension accounts for over 10,000 individuals, with over 1,800 of these members being pensioners.
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.