Motion passed to allow additional withdrawal of pension

(CMR) A motion for persons contributing to pensions covered under the National Pensions Act to be allowed to withdraw up to CI$50,000 to apply to their mortgage was passed in Parliament today.  For couples, the amount would double.

The motion, moved by Member of Parliament for Bodden Town West Chris Saunders and seconded by West Bay West MP, Mckeeva Bush, was passed unanimously with some amendments.

Additionally, the motion also allows each participant to withdraw up to CI$100,000 to pay off their mortgage in full. This amount is also doubled for couples.

Additionally, the amount that can be withdrawn to assist with a deposit was also increased from CI$35,000 to CI$50,000.

Under laws passed in 2011, Caymanians are allowed to borrow up to $35,000 of personal savings from their pension plans to buy or build a first home or to purchase land. Also, Caymanians with a current mortgage on a home of $35,000 or less can borrow from their pension to pay off the loan.

Speaking in Parliament on Friday, Saunders said while some will question what will happen years from now when people retire, there are some who are desperately in need today.

“I am happy that we have some relief coming. Is it the best move? No…While this motion may not be perfect, it is still a relief for thousands of Caymanian families. Let us do something, and let us do something quickly,” he stated.

He said the choice was to either do something or do nothing.

Minister of Labour Dwayne Seymour supported the motion but said the Government still had to provide a safety net for the people when they reach retirement.

“I want to thank all Members of Parliament for their support of this motion during these challenging economic times. I must pay special thanks to my good friend, brother, and colleague, the Hon. Kenneth Bryan, for his timely intervention in negotiating a compromise for this motion to pass,” Saunders said following the passing of the motion.

“Our goal now is to get the changes made to the National Pensions Act as quickly as possible. I want to thank the Government in advance for their urgent attention in bringing these amendments to Parliament.
I recognize that this is not the ultimate solution, but it’s a step in the right direction. Doing nothing was not an option,” he added.

Parliament will be establishing a Select Committee to review the impact as well as make recommendations to ensure the adequacy and viability of the pension funds registered in the Cayman Islands.