Dependent child means a participant’s child (including an adopted child who was adopted in a manner recognized by the Act, an illegitimate child, a posthumous child or a step-child) who is either (a) under the age of 18, (b) under age 23 and in full-time education, or (c) mentally or physically incapable of employment, as certified by the Chief Medical Officer.
The Act provides for payment of retirement benefits to eligible members. The normal retirement age with effect from 9 September 2016 is age 65. Prior to this, the normal retirement age was age 60. However, members with at least 10 years of qualifying service may elect for early retirement from age 50 if they joined the service prior to 9 September 2016 or age 55 if they joined the service after the 9 September 2016.
The Public Service Pensions Act protects your pension from forfeiture, even if convicted of a crime or declared bankrupt. Any pension granted is also exempt from execution, seizure, attachment or any other process in respect of any debt or claim of a creditor. The pension is also not transferable or assignable except if a debt is due to the Government, or a Court Order directs the pension payments to a dependant.
The Public Service Pensions Fund was established on the 1st January 1992 with employee contributions dating back to 1990. Government contributions commenced in 1991 with a matching contribution rate of 4% of pay.
The Public Service Pensions Board was established by Executive Council on 25th February, 1992.
The first Chairman of the Board was Mr. Thomas C. Jefferson OBE, JP.
The first Cheif Executive Officer was and is currently Mrs. Jewel Evans Lindsey, Cert. Hon.
The Fund was started with CI$3 Million and today stands at over CI$1.35 Billion in assets.
In addition to the Government (which includes 24 Ministries and Portfolios), there are 15 Public Sector employers that participate in the Public Service Pensions Plan. These are: Cayman Islands Airports Authority, Cayman Islands Development Bank, Cayman Islands Monetary Authority, Cayman Turtle Centre, CAYS Foundation, Civil Aviation Authority, Health Services Authority, Maritime Authority of the Cayman Islands, Cayman Islands National Insurance Company, Water Authority of the Cayman Islands, Public Service Pensions Board, National Roads Authority, Utility Regulation and Competition Office of the Cayman Islands, Cayman Stock Exchange and Tourism Attraction Board.
As of December 31, 2024, there were 7,313 active members in the plan under administration by the PSPB.
As of December 31, 2024, there were 2,232 pensioners or beneficiaries receiving a monthly payment from the PSPB.
The Public Service Pensions Board is responsible for administering the Public Sector Pension Plans (the Plans), investing the Public Sector Pensions Fund (the Fund), communicating with the Plans employers and plan members, recommending contribution rates in accordance with the latest actuarial valuation, providing policy advice to the Cayman Islands Government, leading public sector pension legislative reform and quantifying their financial impact, as needed.
Specifically under the administration of the PSPB includes the Public Service Pensions Plan, the Parliamentary Pensions Plan, the Judicial Pensions Plan, the Ex-Gratia Pension Plan and the Ex-Gratia Uplift Pension Plan.
Should you die whilst an active participant in the Plan, then a monthly pension equal to one-half of your Accrued Benefit will be paid to your surviving spouse. This pension will continue for the remainder of your spouse’s life. In addition to the pension payable to your surviving spouse, pensions equal to one–half of your Accrued Benefit will be equally divided among all your dependent children. If you die leaving dependent children but no surviving spouse, then your dependent children will receive, in addition, the pension that would have been payable to your spouse, shared equally among them. If you do not have a spouse and dependent children, your benefits will be given to your designated beneficiary.
If you are a participant of the Defined Benefit Part of the Plan, your pension will be based on your pensionable years of service, pensionable earnings and rate of accrual. The longer the pensionable service, the higher your pension benefits. Similarly, the higher the pensionable earnings, the higher the pension benefits. If you are a participant of the Defined Contribution Part of the Plan, your pension will be based on the sum of the balance in both your Participant Contribution Account and your Employer Contribution Account with interest.
1. You must not be Caymanian, the holder of Caymanian status and/or have the right to live and/or work in the Cayman Islands.
2. You must have ceased to reside in the Cayman Islands. For those you joined the plan prior to January 1, 2020, the period of ceasing residency in the Cayman Islands is two months. For those you joined the plan on or after January 1, 2020, the period of ceasing residency in the Cayman Islands is two years.
To cash out your pension, you must be able to satisfy all the necessary criteria and provide proof that you no longer reside in the Cayman Islands. Once all proper documentation is received, the PSPB will undertake work to assess eligibility and process an application.
When the Public Service Pensions Act was amended in 2016 to change the normal retirement age to 65, provisions were added to the Act around re-employment and participation in the Plan.
As per the Act, retired participants who are receiving a pension and subsequently reemployed in Service at a lower salary grade than their pre-retirement salary grade can elect to suspend their monthly pension and be re-enrolled in the Public Service Pensions Plan, under a new Defined Contribution account.
Further, the Act also confirms that a retired participant who is receiving a pension and subsequently re-employed in Service at the same or higher salary grade than their pre-retirement salary grade must have their monthly pension suspended and be re-enrolled in the Public Service Pensions Plan, under a new Defined Contribution account.
If you are considering re-employment and want to understand if this impacts you, make sure you speak with your HR department and also consult with the PSPB.
Post-retirement health coverage is eligible to those who:
1. retire from active service2. have completed a period of ten consecutive years of service
3. were employed with a participating employer such as the Cayman Islands Government
If you want to confirm your potential future eligibilty, make sure you consult with your HR department and the PSPB.
When you retire from the Defined Contribution Part, your Accrued Benefit (the sum of your two account balances) will be converted into a pension although you may elect to receive up to 25% of your Accrued Benefit as a lump sum payable immediately. The remaining balance will be payable in one of three different forms of payment.
The three forms of payment are Single Life Only, Single Life with Ten Year Guarantee and 50% Joint & Survivor.
If you elect a Single Life Only pension, then you will receive a monthly pension payable to you for the rest of your life. When you die, there will be no further payments made. This will be the Normal Form of Payment for you if you are not married when you retire. If you are married, then you may still elect to receive a pension in this form, but you will need to provide the written consent of your spouse for this election.
If you elect the Single Life with Ten Year Guarantee pension, then you will receive a slightly smaller monthly pension for the rest of your life, but an additional benefit may be paid on your death. If, at the time of your death, fewer than 120 monthly pension payments have been made, then your designated beneficiary will receive a lump sum equal to the number of installments of your current monthly pension by which the total number of payments made was less than 120. You may elect to receive your pension in this form whether or not you are married, but if you are married you will need to provide the written consent of your spouse for this election.
If you are married when you retire then your Normal Form of Payment will be a 50% Joint & Survivor pension. Under this form of payment, a pension is payable to you for the rest of your life, followed by a pension payable to your spouse after death, equal to one-half of the pension you were receiving. The spouse's pension is payable only to your spouse at the date you retired and the factor for converting the account balances into a pension will depend on your spouse's age relative to your age.