George Town, Grand Cayman, 13 December 2024 – The Cayman Islands Chamber of Commerce Pension Plan (“Plan”) held its Annual General Meeting on December 4th, where key updates and initiatives were presented. Chairperson Giosino Colaiacovo, along with representatives from Mercer Investments LLC and PricewaterhouseCoopers, provided insights into the Plan's performance, governance, and strategic outlook.
Plan Performance and Lower All-In Expense Ratio
The Plan celebrated another successful year, with membership growing by approximately 12.55% to over 23,900 members. Notably, the annual all-in-expense ratio decreased from 0.74% to 0.68% for the financial year ended June 30, 2024, resulting in lower expenses and higher returns.
Daniel Agnello of Mercer Investments LLC highlighted the Plan's impressive returns, incorporating investment management fees and administrative expenses. The investment managers Blackrock and Income Research and Management (IR+M) were commended for their exceptional performance, with Blackrock's fee being highly competitive at 0.04% per year. The lifecycle funds, with their preset allocations based on age and risk, were also discussed, showcasing returns ranging from 14.93% (Income Conservative Fund) to 31.45% (2060 Fund) as of September 30, 2024.
Board Governance and Succession
Chairperson Colaiacovo introduced the full Board of Trustees and welcomed Ms. Sarah Hobbs as the newest member, appointed as one of the two Chamber of Commerce representatives. He expressed gratitude to the outgoing Trustee, Mr. Mario Ebanks, for his expertise and knowledge, which he leveraged to enhance the Plan during his tenure, including serving as Chair-Elect from June 2021 to June 2024.
Marketing and Engagement Initiatives
A short video summarised the Plan's successful initiatives in the fiscal year 2023/2024, including pre-retirement planning workshops, a companion workbook guide, and the launch of pension employer and employee guides. The website and social media channels were highlighted as key engagement platforms, with an uptick in visitors reported. The Plan aims to expand educational offerings and refine customer service strategies to meet members' evolving needs in 2025.
Operational Efficiency and Employer Compliance
Effective April 1st, 2025, the Plan will implement strategic changes to optimise its contribution procedures, discontinuing cash deposits through Butterfield Bank (Cayman) Limited and Royal Bank of Canada. This proactive measure aims to streamline processes and provide a seamless, modernised experience.
To address employer delinquencies, non-payments, and unallocated contributions, the Plan will implement enhanced onboarding requirements, educational workshops for employers, and closure of non-compliant employer accounts. Collaboration with the Cayman Islands Pension Administrators' Association and regulatory support will be sought to bring delinquent employers into compliance with the Act.
Ms. Amy Wolliston, Deputy Director of the Department of Labour and Pensions (“DLP”) reminded attendees that failure to comply with the National Pensions Act regarding non- payment is a crime under the Act. In addition to the payment of timely contributions, employers should also note that pension contribution payments must be accompanied by the required contribution sheets which identifies the names and amounts that should be credited to the relevant members accounts.
The Plan is calling on all members to carefully examine their latest pension statements and promptly report any irregularities or instances of non-compliance to the Plan.
Additionally, the public is reminded that they can file formal complaints regarding non- compliance to the DLP directly by visiting their website,www.gov.ky/dlp, send an email todlp@gov.kyor by calling 1-345-945-8960.
-ENDS-
For more information about the Cayman Islands Chamber of Commerce Pension Plan or what is coming in 2025, visit chamberpension.ky or its Facebook, LinkedIn or Instagram sites, email admin@pensions.ky or call 745-7630.
Background
The Cayman Islands Chamber of Commerce Pension Plan was established 12 May 1992. The Plan is a non-profit pension plan, committed to providing transparent operations, and competitive, conservative risk- adjusted returns.
Key provisions of the National Pensions Act (2024 Revision) include:
Every employee in the Cayman Islands, between the ages of 18 and 65, must have a pension provided by their employer
Caymanians who are aged under 23 and who are in full time education are excluded from the definition of an employee.
The self-employed, those working part-time, casual workers, probationary staff and people on short-term contracts are included
If someone has more than one employer, then each employer must pay into the employee’s pension plan
Expatriates who have been in continuous employment for more than nine months must have a pension plan
The only people excluded are employees who are non-Caymanian or non-Permanent Residency that are employed as a “household domestic” (e.g. maid or gardener) in a private residence.
Employees and employers must contribute a total of 10% of the employees’ earnings to a pension plan, to a maximum of CI$87,000.
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