Friday, June 16, 2006

Cyril Theriault Pensions Superintendent	Pierre Lautischer Pensions Inspector

On his first visit to the Sister Islands, Pensions Superintendent Cyril Theriault of the National Pensions Office (NPO) said that future trips may take place every three months, based on demand.

Mr Theriault, who spent several days on Cayman Brac with Pensions Inspector Pierre Lautischer last week, reported that there had been several complaints on the Island, but nothing out of the ordinary.

The existence of the NPO is to benefit the employee. However, they are also there to answer all questions from the employers and not just to deal with complaints, he said.

In one situation on the Brac (which they had encountered before), employers and employees on very low wages had come to an agreement that there would be no pension plan.

However, Mr Theriault emphasized that this type of agreement is not legal, even if the Pensions Law is seen as negative by both sides.

"If employers realize that they may be in conflict with a certain aspect of the Pension Law, we invite them to come forward so that we can work with them. The aim is not to prosecute but to get money into the plan. Prosecution is the last resort," he stated.

He explained that, under the Pensions Law, every employee is to be covered by a pension plan, except expatriates who have less than nine months service in the Cayman Islands, or expatriates employed by individuals to work in private residences (domestics).

The responsibility of the employer is to provide a pension plan for employees. Initially, the employees are supposed to collectively vote or determine which pension plan they want, and they can also get together later and vote to change their plans.

Employees can request transfer from one plan to another, for example if they change jobs. Depending on the plan, if an employee has less than $5,000 paid into it, they may be eligible for refund on termination of employment and leaving the Islands.

If no contribution has been paid into the fund for two years and employees have been off the Islands for at least six months, then they are eligible for the total amount in their fund, even if greater than $5,000, or they can get it transferred to a Cayman bank account.

Employers must contribute to a pension plan no less than 5 percent of the employee's earnings, and employees must pay no more than 5 percent into the plan.

Most plans are structured on a 5-5 percent basis. However, in a good number of plans employers contribute the greater share, such as a 7 percent - 3 percent, to make the minimum 10 percent contribution.

Pension contributions are supposed to reach the pension plan within two weeks after the end of the month, which is to encourage employers to pay on time.

Employers provide the pension provider with the necessary information so that they can keep proper records, such as date of birth, salary, pay period. Employers must be prepared to respond to requests for information from the Superintendent of Pensions.

It is the employee's responsibility to make sure they are having regular pension deductions from their earnings, and that those contributions are being remitted to the pension provider on a regular basis.

"Check your pension statement carefully and keep pay slips. Make sure that you are not paying more than 5 percent, and use a personal address and not the employers for statements," advised Mr Theriault.

Anyone who is suspicious about their employer can contact the NPO at 945-8960, or by e-mailing npo@gov.ky, though it is recommended to call the pensions provider first.

Brochures outlining more fully the responsibilities of employees and employers will be made available at all post offices.

nicky@caymannetnews.com

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