DLP Announces Increase to Annual RSA Payments Effective 1 July 2026

The Department of Labour & Pensions has issued updated guidance confirming an increase to the maximum annual withdrawal amount for Retirement Savings Arrangement (RSA) accounts, effective 1 July 2026.

Under the updated guidance, the maximum RSA pay-out will increase by 5.2%, moving from CI$15,400 to CI$16,200 per year. This is equivalent to CI$1,350 per month.

An RSA is one of the ways eligible retired members may access their pension benefit. The maximum amount a member may withdraw each year is based on their age and account value, using the RSA drawdown schedule issued by the Department of Labour & Pensions. Where the amount calculated under the schedule is less than CI$16,200, the annual maximum is now deemed to be CI$16,200.

Members who received RSA disbursements between 1 January and 30 June 2026 may be eligible for an additional payment, where applicable, to reflect the new annual maximum. Approved RSAs will be entitled to the new maximum figure at the member’s next disbursement.

The updated guidance also notes that if a member has already received a higher amount based on their age and account value, no further disbursement may be required this year.

Members are reminded that they may withdraw any amount up to their annual maximum. However, if a member does not take the full maximum amount within the calendar year, the remaining amount cannot be withdrawn in a later period.

For members aged 89 or older, the guidance continues to provide the option to take the full RSA account balance as a lump sum, or to continue withdrawing annual amounts, subject to the applicable requirements.

The Chamber Pension Plan encourages members currently receiving RSA payments, or those preparing for retirement, to review the updated guidance and contact their Pension Plan Administrator if they have questions about how the change may apply to their individual account.

For assistance, please contact the Chamber Pension Plan Administrator’s Agent at admin@pensions.ky.