Here we outline the COVID-19 pension holiday and how to withdraw emergency funds from your pension plan between April and September 2020.
Due to the Covid-19 pandemic and the economic hardship it has caused numerous residents, the Cayman Islands Government has amended the pension law (National Pensions (Amendment) Law, 2020) to allow an emergency one-time withdrawal of funds from your pension plan. This is open to both Caymanian and non-Caymanian employees, as well as to self-employed people, but not those who have already claimed normal or early retirement and no government civil servant or those employed in a government company can apply Also those that have left the Cayman Islands from 1st February 2020 to the expiry of the amendment can also apply.
For those who are eligible the amount they can withdraw depends on how much they have in their pension plan at the time of the withdrawal. Those with less than CI$10,000 in their pension can withdraw 100% of the balance. Those with more than CI$10,000 in their account ca withdraw up to CI$10,000 and then up to 25% of the remaining balance.
At this time all payments are being made by direct deposit to a financial institution. For non-local payments please provide wire transfer instructions. For local payments there is a section at the end of the application where it asks for the name of your bank and your bank account number. In all instances one form of government issued ID is required. It must show the signature and it must be notarised or certified in the last 3 months.
There is also a voluntary pension holiday on contributions from April 1st 2020 for six months. If you and your employer choose not to take the government up on this option then all your contributions from April to September 2020 must be applied on your pension contribution form as Employer Voluntary and Employee Voluntary (not Employer Mandatory and Employee Mandatory).
For a recommended list of Cayman Islands Notary Publics along with their contact details, and the rules in place since Covid-19 lockdown, please see here: https://caymanresident.com/live/services/notary-public
For a government issued list of Notary Publics see here (NB there are no contact details): https://www.judicial.ky/general-public/notaries-public
For the most current version of the application form see here: http://www.gov.ky/portal/page/portal/dlphome/publications/application-form-emergency-withdrawal-pensions-fund
For Frequently Asked Questions (FAQ) see here: http://www.gov.ky/portal/page/portal/dlphome/publications/dlp-covid-19-faqs