September 19, 2020

National Pensions Board done away with and new pension regulations proposed

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Last Monday (28) the Minister for Employment, Rolston Anglin, unveiled a draft of a new National Pensions Bill to be submitted to the Legislative Assembly.

The new bill focuses on the role of the employer to ensure they comply with the pensions law. The new bill deals with private worker’s pensions.

The Cayman Islands Monetary Authority (CIMA) and the new Department of Labour and Pensions (DOLP) will have split responsibilities in the governance of the new legislation. The CIMA will regulate the pension funds and the DOLP will ensure compliance by the employer. The old National Pension’s Board (NPB) will be done away with.

Some of the proposed requirements will be the issue of quarterly statements, host annual meetings for workers (where they will be able to ask questions), to inform employees and the DOLP when employers are delinquent with contributions and to keep records of the pensions for SEVEN years!

Minister Anglin is inviting comments on the proposed new bill and officials will be engaged in a wide consultation of the law.

Anglin said the reason for the removal of the NPB and to split the responsibilities between the CIMA and the new DOLP was because the CIMA was already resourced to oversee and regulate pensions. “It would be a costly exercise to create an internal regulator for the funds themselves within the labour department,” he said.

Any business not in compliant will not receive a trade and business license and therefore will not be able to obtain work permits

It was also revealed that the normal retirement age will be 65 and employers will now have to continue paying into their worker’s pension fund until that age is reached. There will, however, be a three year transition period.

Employers who do not agree their fixed penalties will have to challenge the fine in court. Whilst the employees who feel their employer is not compliant can complain directly to the labour department.

With businesses already under pressure and some failing one wonders when the government will be doing something to help them. The fewer the businesses, the fewer the employees.

To give you some idea of the size of the proposed bill with all its regulations it comprises 118 pages!

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