(CMR) The Government has extended the national pension holiday until 30 September 2022. The pension holiday was expected to end on 30 June; however, Premier Wayne Panton announced on Premier Access on Wednesday, 22 June, that an extension was being considered.
Cabinet’s decision to extend the temporary break in the legal requirement for joint contributions by employers and employees to workers’ pensions aims to reduce the impact of the current global inflationary crisis on local businesses and individuals.
Deputy Premier and Minister for Labour, Hon. Chris Saunders noted that the pensions holiday was initially developed to mitigate the impacts of the COVID-19 pandemic on local businesses.
“Extending the pensions deadline will ensure employers have more cash on hand to meet their business needs and that employees can have increased money to meet their living expenses. With the cost of living in the Cayman Islands already up by 11.2 percent in the first quarter of 2022, and more inflation expected before year-end, our goal was to reduce the pressure on employers and to keep as many people in work as possible,” he said.
As with the previous pension holidays, Government Owned Companies and Statutory Authorities are excluded from the new Cabinet Order and must continue to make pension contributions.
The Department of Labour and Pensions reminds the public that voluntary pension contributions can be paid into pension funds in such cases. Either the employee or the employer may opt to pay voluntary pension contributions; however, the other party is not required to contribute as well.