Government published on Monday, 26 May 2025, new regulations enhancing ex gratia pension benefits for Caymanian Civil Servants who, among other things:

• Held an office in the public service prior to, and continued to be employed after, 1 January 2000, and
• were eligible but failed to receive a Contracted Officers Supplement for their period of service prior to 1 January 2000.

The regulations allow for such persons to have an ex gratia Defined Benefit Pensions calculation apply not only to their pre-2000 period of service, but equally for all subsequent service until their retirement date.  

To determine your eligibility for this benefit, persons are required to submit a completed application to the Public Service Pensions Board for consideration. The application process provides eligible individuals with a structured pathway to access this ex-gratia defined benefits pension for their full years of service.

This regulation further standardises the pension process, ensuring fair treatment for all eligible Caymanian Civil Servants while maintaining fiscal responsibility. This expanded facility provides eligible applicants with a defined benefit pension calculation which is applicable to their entire years of service and which will be paid as a monthly supplement when retired.

Applicants must now submit their applications using a standardised form to the Chief Executive Officer, Public Service Pensions Board. Each application must include:

• A letter explaining the grounds for applying for the grant of an ex-gratia defined benefit pension
• Ex-Gratia Pensions Application Form
• Medical certification of permanent disability (where applicable)
• Original birth certificate or passport documentation
• Original status certificate (where applicable)
• Copies of relevant service contracts

The ex gratia Defined Benefit pension is calculated by paying the difference between the Defined Contribution Benefit, which these historical employees are currently entitled to, and the Defined Benefits pension.  The approved enhanced pension provisions will be calculated using the same formula as standard defined benefit pensions, with some adjustments.

The new regulations specify that applicants cannot receive ex-gratia pensions if they are already receiving:

• Other public service pension entitlements
• Previous ex-gratia pensions
• Settlement agreement payments for the same service period

The new requirements take effect immediately. Persons who believe they are eligible for this ex-gratia Defined Benefit pension are encouraged to review the full eligibility criteria before submitting their applications. For more information about the application process and required documentation, contact the Public Service Pensions Board office.