Published 17th May 2022, 9:47am
The Department of Labour & Pensions has increased the annual disbursement of funds under Retirement Savings Arrangements (RSA) by 3.3 percent to match the 2021 rise in the Cayman Islands' cost of living. This means that individuals who receive funds through an RSA, will get access to more funds annually.
The recent release by the Economics and Statistics Office of the 2021 Consumer Price Index confirmed an increase in the cost of living of 3.3 percent. Following receipt of this information, the Director of Labour & Pensions authorised an increase in the annual disbursement amount from $12,480.00 to $12,900.00, under section 19(2)(a)(iv) of the National Pensions (General) Regulations.
Director of Labour & Pensions Bennard Ebanks said “I extend my gratitude to the newly appointed National Pensions Board who supported the decision to increase the RSA, which allows retired persons to access more funds annually. We hope this increase helps to offset the Islands' increased cost of living. It's important that our senior and older persons be able to access needed funds afforded to them via their retirement arrangements.”
Deputy Premier and Minister for Border Control & Labour Hon. Chris Saunders said, “Our retirees and older persons have played an integral role in the development of the Cayman Islands and our present day economic success. It is vital that we ensure they are able to live a life of dignity and independence throughout their retirement years, increasing the annual RSA disbursement amount assists with this objective, which is a fundamental aspect of our Islands' Older Persons Policy.”
The National Pensions Act permits members to access their pension benefit at retirement, either through an annuity or an RSA. The maximum annual withdrawal amount is determined by the member's age and value of funds in their account. The age is defined as the age of the member at the start of the calendar year in which the payments are being made. This increase allows members to withdraw the new annual maximum which is $12,900 dollars. There is an option for persons not wanting to get funds through an RSA, to terminate the RSA and transfer their balance to an approved annuity.
The new annual increase came into effect on 1 April 2022 however, applications received prior to 1 April are subject to the disbursement amount based on the previous RSA figure.
For queries relating to the new RSA increase contact firstname.lastname@example.org or call 945-8960.