Pension holiday gets final extension | Loop Cayman Islands

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Deputy Premier and Minister for Labour, Chris Saunders

By way of Cabinet Order, in accordance with section 1(3) of the National Pensions (Amendment) Act 2020, the national pension holiday has received a final extension through 30 June 2022.

The pension holiday, in place since April 2020 as a COVID-19 relief measure, exempted employers, employees, and self-employed individuals from making mandatory contributions to pension plans.

The rationale behind the pension holiday was that companies would have had more cash available to cover expenses such as payroll and health insurance contributions while employees would have more funds available to assist with their individual living expenses during the pandemic.

Reacting to the final extension, Premier Wayne Panton said:

While it has been helpful to individuals and businesses to suspend the pension requirement during the past two years, we are now at a point in time where it is in the best interest of employees, to resume the funding of their pensions. It is the responsible approach to adopt given the improving economic environment and the Government is providing advance notice of this to allow employees and businesses to prepare for the resumption of these payments starting July 1st, 2022.

Deputy Premier and Minister for Labour Hon. Chris Saunders said that “the pandemic created challenges for both employees and employers as well as those currently seeking employment.”

With the relaxation of some travel restrictions, the resumption of commercial airline flights and the upcoming reintroduction of cruise tourism, the decision to extend the pension holiday for another three months was made to allow additional time for businesses to grow to full strength as the country reopens.

Saunders continued.

As with the previous pension holiday periods, Government Owned Companies and Statutory Authorities are excluded from the Order, and therefore must continue to make pension contributions to their respective plans.

The Department of Labour & Pensions reminds the public that voluntary pension contributions can be paid into pension funds. Either the employee or the employer may opt to pay voluntary pension contributions, however, the other party is not required to contribute as well.

Members of the public would like more information regarding the foregoing may contact [email protected].

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