(CMR) People registered in pension funds are being reminded that as of the end of this year changes to the National Pensions Law will come into effect. Anyone leaving the island will only be able to obtain a refund if the pension account has less than CI$5,000 in it.
The changes are intended to prevent people from accessing their pension funds even if they leave the jurisdiction permanently. Instead of transfers into overseas accounts will be the available option.
Effective from 30th December 2019, pension refunds, under the National Pensions Law, will only be granted in cases where the member’s account value is less than CI$5,000, under a revision made to the National Pensions Law.
Refunds of accounts valued less than CI$5,000 will continue to be governed by the pension plan’s rules and its administrator.
Members with accounts valued at greater than CI$5,000 who are wishing to apply for a refund before 30th December 2019, must satisfy all of the below requirements.
- The member’s employment must be terminated;
- No pension contributions have been made in the last two years; and,
- The member must cease to reside in the Islands, which requires an absence of six months or more.
Members must be able to meet the above requirements and have submitted an application form by the 30th of December in order to qualify. Application forms can be obtained directly from pension plan administrators.
The National Pensions Law applies to private-sector workers only. Pensions for members of the civil service are governed by the Public Service Pensions Law.