If you are a civil servant or public sector employee in the Cayman Islands, you are a member of the Public Service Pensions Plan (PSPP), administered by the Public Service Pensions Board (PSPB)
As the largest pension administrator in the Cayman Islands, the PSPB covers employees across 15 government ministries and portfolios, as well as 13 statutory authorities and government-owned companies. The PSPB manages accounts for over 10,000 members, including more than 1,800 pensioners.
The PSPP has two types of plans:
- Defined Benefit Plan: For members who joined prior to January 2000
- Defined Contribution Plan: For members who joined after January 2000.
New employees of participating employers will automatically be enrolled in the defined contribution plan.
The PSPP is a leader in the Cayman Islands pension sector. As of 31st December 2024, the market value of the Fund was CI$1.35 billion. In 2024, the Fund achieved an exceptional return of 16.4% and it was this return that ranked the Fund in the top 1 percentile of its peer group for performance in the year.
The Public Service Pensions Board continues to complete major initiatives relating to system self-service, risk management, appropriate oversight within the Authority and increased audit, with the results being enhanced services and retirement income for members who have served the islands.
Contributions & Rate of Return: For plan members of the defined contribution plan, contributions of 6% will be deducted from your salary or wages and will be credited to your employee contribution account. A further 6% of your pensionable earnings will be credited to your employer contribution account on your behalf by your employer. The balances in both these accounts will increase each year based on a credited rate of return, which is calculated from the average of the rates of return received on investments for the previous three years, net of expenses.
Retirement Options: Your age, years of service and Caymanian status are all factors that will determine your retirement options, or options available to a plan member if they leave the PSPP before becoming eligible to retire. The normal retirement age is 65, but early retirement options are available for plan members with at least 10 years of qualifying service. Upon electing to retire, a plan member can collect a full monthly pension, or they can elect to receive up to 25% of their benefit as a lump sum and then receive a reduced monthly pension.
If a plan member is no longer employed with a participating PSPP employer, and they are not eligible for retirement, they have options to leave their accrued benefit in the plan until retirement, transfer it to another approved plan in the Cayman Islands or request a cash-out of their accrued benefit. Note: The cashout option is subject to satisfying specific conditions relating to a non-Caymanian no longer working and residing in the Cayman Islands.
Public Service Pensions Board: If members want more information specific to their pension, they can meet one-on-one with a PSPB member services officer. Walk-in service is available Monday to Friday or by appointment at either of the PSPB offices. The PSPB Grand Cayman office is located in Cricket Square in George Town, and the PSPB Cayman Brac office is located at 5 Dennis Foster Road. For more information, call PSPB on (345) 945 8175, email: pspb@pspb.ky or visit www.pspb.ky.
