Trustee Candidates
Extraordinary General Meeting (EGM) 2023

People are generally living longer, healthier lives than in the past, which means if you retire at age 65, you may spend more than 25 years in retirement. That’s a long time to live on a “basic” retirement income, so now, more than ever before, it's vital that you start saving for your retirement as soon as you can. By starting to save today, you’ll be better prepared to grow your future income and enjoy more security during all those years after you stop working. Your retirement income needs will depend on what your expenses are likely to be, but it is generally accepted that you will need between 70% and 85% of your pre-retirement income to live comfortably in retirement.

If you are employed in the Cayman Islands, both you and your employer must contribute towards your pension. The contributions that both of you make are related to your total earnings. Total earnings include salary, wages, leave pay, fees, commission or gratuity, as well as bonus payments that are more than 20% of your basic pay. Earnings do not include severance payments, retirement long service recognition payments, and health insurance premiums that are paid by the employer. Anyone earning more than CI$87,000 is not required to make pension contributions on the amount of earnings above CI$87,000 in a calendar year, although they may choose to do so voluntarily. Employers are only obligated to make contributions on the first CI$87,000 of income. Every self-employed person must contribute a sum equivalent to 10% of their earnings up to CI$87,000 at a minimum. Employers are required by law to contribute an amount that is no less than 5% of your earnings. As an employee, you should not be required without your consent to pay more than 5% of your earnings. The employee’s contributions must be deducted at regular intervals, and together with the employer’s contribution, paid directly into the pension fund. Contributions must be made within 15 days of the last day of the month in which the contributions were due. Late contributions will be subject to interest.

By law, every employer in the Cayman Islands has to provide a pension plan for its workers. Those that don’t are committing an offence and can be heavily fined. This means that anyone working between the ages of 18 and 65 must be a member of a recognised pension plan, even if they are self-employed, working part-time, are casual workers, probationary staff or on short-term contracts; in fact, anyone working must have a pension plan. If someone has more than one employer, then each employer must pay into the employee’s pension plan. Expatriates are allowed an initial nine months (grace period) before legally having to begin paying pensions. If you leave the island between employers for more than six months, then your 9-month grace period starts over. The only people excluded are employees who are non-Caymanian or non-Permanent Residents who are employed as a "household domestic" (e.g. maid or a gardener) in a private residence. You can also visit www.dlp.gov.ky for more information about pensions in the Cayman Islands and download a copy of the National Pensions Law.

The money that each of you deposit into your pension is called your basic or mandatory contribution. When you are a member of the Chamber Pension Plan, the contribution automatically gets deposited into an account in your name, and then it’s invested into one of our Chamber Lifecycle Funds. Which Fund your money gets deposited into depends on your age on the date you join the Plan. Your contributions will continue to be placed into this account until you retire, or elect to transfer your assets, if you are eligible. How your money is invested changes over time, with the type of investments reflecting how long you have until you reach the normal retirement age, according to the National Pensions Law. Lifecycle funds take the guesswork out of investing, because they automatically adjust the allocation of assets they invest to reflect your evolving investment needs and goals.

If you want to take less risk than the asset allocation suggested for your target year, you could allocate your Additional Voluntary Contributions (AVCs) to a more conservative lifecycle fund. You also have the option to invest your AVCs in a more aggressive portfolio if you are willing to take more risk. With AVCs, you contribute as much – or as little – as you like. There’s no maximum and no minimum. Plus, you can save a different amount each month if you want, based on what you can afford. You decide how to invest your AVCs. Choose from one of our Lifecycle Funds, all run by world-class investment managers. The National Pensions (Amendment) Law, 2016, was published in the Gazette in June 2016; however, these legislative changes to the National Pensions Law did not come into effect until the date listed in the Commencement Order. In accordance with the National Pensions (Amendment) Law, 2016 (Commencement) Order, 2016, section 47 (10), which permits access to additional voluntary contributions ("AVC"), came into effect on March 31, 2017. Section 47 (10) allows pension plan members to access their AVC prior to reaching the normal age of pension entitlement under four categories: medical purposes, temporary unemployment, housing purposes and educational purposes. If the member has AVCs that they have not accessed prior, the AVC can be paid as a lump sum when the member reaches the normal age of pension entitlement.

As you may be aware, the National Pensions (Amendment) Law 2016 passed in the Legislative Assembly and has now been published in the Gazette. Specific aspects of this Amendment as indicated by the National Pensions (Amendment) Law, 2016 (Commencement) Order 2016 are in force. Please note the National Pensions Law (2012) remains in effect and employers, employees, as well as pension plan administrators and members are expected to comply with those requirements in addition to those sections of the National Pension (Amendment) Law 2016 that are in force.

We do not charge fees to join or leave the Chamber Pension Plan. In addition, we don’t charge monthly account maintenance fees. As a not-for-profit entity, the only fees we charge are used to pay expenses related to the management and administration of the Plan. The performance of the Chamber Pension Plan is reported after all fees. There are no hidden fees. The most recent audited expense ratio containing all expenses of the Plan, was 0.80% as of June 2020.

You can check your Chamber Pension Plan statement online at any time: just enter your user name and password on the Membership Log-In page. If you do not have a user name and password, contact the Administrator. Alternatively, you can review your semi-annual statement, which you will receive by mail. Read More