A temporary, two-year suspension of pensionpayments known as the pension holiday officially came to an end for non-Caymanians on April 25, 2012.
If you were one of the 437 non-Caymanian Silver Thatch members who participated in the pension holiday, we recommend that you check to make sure your employer has resumed deducting pension contributions from your pay. Your employer must also resume submitting employer contributions to your personal pension account.
In an effort to reduce financial burden caused by the global recession and to stimulate the economy, the government introduced this voluntary holiday for both Caymanian and non-Caymanian workers. For the specified holiday period (April 26, 2010 to April 25, 2012) pension plan members had the option to suspend their basic 5% pension contribution and receive it as part of their regular pay. Similarly, matching employer contributions were also suspended if the workers agreed to voluntarily participate in the holiday.
According to a recent census, less than 8% of the total Cayman Islands’ workforce took part in the holiday. The low participation is proof that the majority of Caymanians and non-Caymanians remained committed to making the most of their long-term retirement savings.
While Caymanian pension plan members had to resume contributions back in April 2011, non-Caymanians had an extra year to continue receiving their pension contributions as regular pay. With the pension holiday officially over for everyone, basic pension contributions by employers and members should have resumed.
Whether you are a Caymanian or non-Caymanian, now that the pension holiday is officially over, the money you save in the Silver Thatch Pension Plan is yours to keep and build on – so that you can look forward to the retirement you deserve.
If you participated in the holiday, monitor your pay slips to ensure that pension deductions have resumed. If your payroll does not reflect your pension deductions, please notify your Human Resources Manager.