Under the National Pensions Law, every employer in the Cayman Islands shall provide a pension plan for every person employed by him/her. The main exception to this is employees who are non-Caymanian or non-Permanent Resident that are employed as a “household domestic” (e.g. maid or gardener) in a private residence. Those in self-employment, those working part-time, casual workers, probationary staff and people on short-term contracts must all have a pension provider. If you have more than one employer, then each employer must pay into the employee’s pension plan.
Employers of work permit holders must also pay into a pension scheme commencing only after the employee has worked in the Cayman Islands for a total of nine months.
It is worth noting that Caymanians who are aged under 23 and who are in full time education are excluded from the definition of an employee.
Under the law, employees and employers must contribute a total of 10% of the employees’ earnings into a pension plan. No matter whether you are paid weekly or monthly, you and your employer must pay this amount into the pension plan. If you are self-employed then you must contribute the equivalent of 10% of your earnings into your pension scheme.
If you signed a contract at the start of your employment, ordinarily, the terms of your contract will include the pension provider of your employer. If you did not sign a contract, then you should speak to your employer at the earliest opportunity to ensure that your employer is a member of a pension plan and that they are paying theirs and your contribution into that plan.
The Chamber Pension Plan allows you to create an online profile which gives you access to the online portal where you can view your statements online. In addition, you will be sent a semi-annual statement detailing the balance of your pension and the payments made by you and your employer into your plan. You will be able to see on your statement whether your employer is fulfilling its obligations under the law.
If you start a new job and your employer does not ask about your previous pension membership, then you should speak to them to ensure that they have a plan and that they enroll you as a new member. If you feel unable to do so, speak to a colleague or alternatively you can contact the Department of Labour and Pensions (DLP) who may be able to investigate.
The DLP may be able to investigate the following non-compliance:
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