On the horizon

Published on

On the horizon

on the horizon
Proposed legislation could mean pension plan members may have to wait longer before they are eligible to receive benefits

The National Pensions Bill 2012, announced on May 28, 2012, aims to reform the existing National Pensions Law created in 1998. The bill’s key driver is to give regulators more tools to deal with non-compliant employers – as many as 600+ who are behind in their required contributions to pension plans, including the Silver Thatch Pension Plan and other similar plans.

Notably, the bill also proposes to raise the pensionable age – age at which members are normally eligible to receive pension benefits – to age 65.

To enhance the process of monitoring and enforcing pension contributions, and improve the regulation of pension plans and pension plan administrators, the bill would reassign management of the new legislation to the Cayman Island Monetary Authority and the new Department of Labour and Pensions. Currently, the National Pensions Office is responsible for the existing legislation.

The bill also aims for greater transparency and increased disclosure to ensure that members are better informed about their pension arrangements. Proposed additions include a legal requirement for annual general meetings and for quarterly statements of pension benefits to be issued. As you may know, this is already the practice of Silver Thatch Pensions. There is also a new requirement that information regarding pension fund performance be made available to employees enrolling in a plan – this information is currently available from Silver Thatch pensions through the client services agent.

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