(CMR) The government has decided not to extend the emergency pension withdrawal beyond October 30, 2020. However, it will allow for the pension holiday to be extended until December. Cayman workforce access over $310 million dollars under the scheme.
The premier shared that he did think it was necessary to allow any further access to pensions funds which would put future retirement savings at risk. Despite this initial comment, he is not ruling out the possibility completely but does not currently see a need for it.
The announcement came at the press briefing after the Premier was asked to respond to publically submitted queries about whether or not they would be allowing people to continue to access their pension account past the initial month-end deadline. However, the Premier made it clear this will not be allowed.
There have been concerns expressed to CMR from some banks and other institutions that expressed that many persons were not being entirely responsible with their pension withdrawals. A few days ago a bank executed noted that clients were using pension funds to pay off car loans and then applying to the bank to purchase new vehicles.
This irresponsible money management and misuse of pension funds have made many concerned and an exclusive source has shared that Government’s Needs Assessment Unit (NAU) is now masking for pension companies to verify if any of their applicants have received emergency pension withdrawals.
McLaughlin also encouraged people to not spend all of their pension money but strike a balance and save some as well.
The government had allowed eligible individuals to withdraw their private pension accounts up to 100% of the balance up to $10,000. Those with accounts in excess of that maximum can withdraw $10,000 and up to 25% of the remaining balance.
They also implemented a pension holiday from 1 April to 30 Sept., which took effect retroactively. The extension on the public holiday is not yet law but would mandate that no pension withdrawals come out of a person’s salary until December.