It also reflects growing awareness of the scale of abuse of the National Pensions Law.

The office is also pursuing a wide range of new enforcement regulations that would enable them to speed up the legal process of prosecution.

The Pensions Law, which came into effect in 1998, requires that employers pay ten percent of their employee’s salary to a pension provider (no more than five percent being deducted from the employees’ salary - the additional money deducted from the employer).

Although the office has taken only two pensions law violations to court, they are actually investigating around 550 complaints.

These complaints have either been brought by employees who have become suspicious that their pension contribution is not being paid, or by the pension providers, who are required, under the law, to inform the National Pensions Office of a pension contribution non-payment within 45 days of becoming aware of it.

Superintendent of Pensions, Cyril Theriault has been working at the National Pensions Office since November 2004.

Explaining the manner in which the work of the Pensions Office continues to develop, as new needs become apparent, Mr Theriault said, “The inspector’s role was initially to help build files to be passed onto the Solicitor General’s office, and to also establish the office’s internal system of legal procedure.

“Now its role has been expanded to include dealing with employees and employers concerning any issues they may have with respect to the law.”

Mr Theriault also believes the National Pensions Law needs to be modified in order to increase his office’s powers of enforcing compliance. He feels the present process - limited to taking delinquent employers to court - is too slow, and is looking for change.

“I think that the National Pensions Law has to be modified, so that we can obtain our results quicker, either by broadening the powers of the office, or by speeding up the legal process,” he said.

“Currently, if someone violates a section of the National Pensions Law, the only way we can force compliance is to begin legal proceedings against them. For minor offences we would like the ability to impose a fine on the person or company, and not have to take them to court, for the court to impose the fine,” said Mr Theriault.

“It would be much like issuing a speeding ticket. Then if the person wanted to contest it, they would be able to take it to court.”

Mr Theriault also suggested non-monetary sanctions might include withholding renewals of trade and business licences or work permits. He added that he would like to see the most serious offenders deterred by the possibility of a prison sentence, in addition to the fines that are presently the only disincentive stipulated under the National Pensions Law.

“We consider the most serious cases to be when employers continue to take deductions from their employees’ salary, but repeatedly fail to transmit those funds to the pension plan provider,” Mr Theriault said.

Mr Theriault said his office was also exploring the possibility of using the powers of custodial sentences already attached to other laws, as a deterrent.

“We have discussed with the Solicitor General the pursuit of charges for fraud or theft under the penal code, as opposed to the charges under the National Pensions Law,” he said.

Mr Theriault also sees education of both employees and employers as one of the roles of the Pensions Office. To this end, the Pension Inspectors are helping to develop a public education and communication campaign.

“Education is vital in ensuring that employees and employers understand their rights, obligations and responsibilities within the Cayman Islands Pensions system,” he said.

“It is also important to make sure employees are aware of the amount of money necessary to ensure that, when they retire, they will be able to maintain their standard of living.”

Mr Theriault explained that, in 2004, there was a staffing plan worked out with the Ministry of Education, Training, Employment, Youth, Sports and Culture, that involved hiring three new inspectors over a period of three years.

In March 2005, they hired the first Pension Inspector, Pierre Lautischer.

Mr Lautischer is due to leave in May this year, but the office is planning to replace him. The second Pensions Inspector, José Massias, joined the Office in May 2006.

The latest Pensions Inspector to join on 2 April, Alex Schulz, has a background of three years’ investigative work with the Royal Cayman Islands Police Service (RCIPS), and before that, nine years in the Canadian police force.

christopher@caymannetnews.com