Bucket List #31

Learn to sail

Now that I've retired, Chamber Pension Plan allows me to CHASE ADVENTURE!

Refunds

In general, the National Pensions Law states that refunds are not allowed from a pension plan.


However, a refund can be paid if all of the following apply:

 

  • The value of the member's pension account is less than CI$5,000; and
  • The member's employment is terminated; and
  • The member no longer resides in Cayman. A waiting period and/or proof of non-residency may be required (for example, a work visa, a current utility bill in the member's name from their new address, sworn affidavit of non-residency, etc.)


If the value of the member's account is greater than CI$5,000 they may transfer their account (with the Director of the Department of Labour and Pensions' approval) to an approved retirement account in another country. Otherwise, the National Pensions Law requires a two-year waiting period before the member's pension can be paid out in a lump sum.


A person is deemed to have ceased to be a resident in the Islands when they have been absent from the Islands for a period of six months or more. When calculating a period of absence, any periods of residence in the Islands for a continuous period of less than three months will not be taken into account.

 

Refund Forms

As there are additional requirements based on the circumstances of members receiving a refund, there are nine forms available, depending on the situation of the member. 

Local Transfer

Redemption - Early Retirement Over $5000

Redemption - Retirement Over $5000

Redemption Request - Over $5000

Overseas Transfer

Redemption Request Caymanian

Redemption Early Retirement Under $5000

Redemption Retirement Under $5000

Redemption Request Under $5000

Members should contact the Administrator should they have any questions concerning meeting the requirements for a refund. The Administrator can be contacted at admin@pensions.ky.

 

Important:


The member's pension cannot be paid out or transferred until their employer makes the final contribution to their account. This may be six weeks or more after the member has stopped working. As a result, you should be aware that a refund or transfer may take three months or more, so do not plan on using a pension refund to leave the Island or to pay expenses.


Administrative expenses incurred while executing the refund, such as draft and courier fees, will be deducted from the refund amount.