Section 6Part 2 — Registration and Administration
Prohibitions of administration of an unregistered pension plan
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6. (1) Subject to subsections (2), (3) and (4), no person shall administer a pension plan for the benefit of employees unless the plan has been registered by the Director and a certificate has been issued in respect of the plan by the Director.
Notwithstanding subsection (1), a pension plan which has not been registered in accordance with subsection (1) may be administered without the required registration during the first two hundred and seventy days after the 1st June, 1998.
Notwithstanding subsection (1), a pension plan which was offered or subscribed to by an employer before the 1st June, 1998, which is acceptable to the Director, may continue to be administered as a supplementary plan without being registered, but only if —
the employees’ participation is voluntary;
the pension plan is in addition to a registered plan;
the pension plan is entered into with full information; and
regular reports are provided to the employees in accordance with guidelines issued, from time to time, by the Director.
(a) Notwithstanding subsection (1), international pension plans, which are defined benefit pension plans at the 1st June, 1998, may continue to National Pensions Act (2024 Revision) Section 6 c Revised as at 31st December, 2023 Page 17 operate without registration subject to such conditions as may be imposed by the Director and to the conditions specified in paragraph (c). the plan; are provided within a reasonable time to all employees; of termination of employment or winding up of a plan referred to in paragraph (a) shall have been approved by the Director; transferred to another plan; and
An employee shall only be eligible to participate in a plan of a type referred to in paragraph (a) if, at the 1st June, 1998, that employee has been participating in the plan for at least ten years and —
there are no more than ten years before that employee’s date of compulsory retirement; employee’s employment in the Islands.
the employee is at least forty-five years of age; or
the employee has been participating in the plan prior to that
The conditions referred to in paragraph (a) are —
the employees’ participation in the plan shall be voluntary;
the employer shall ensure that —
the estimated value of the fund;
the investment performance of the fund;
changes in the contribution rate, if applicable;
amendments to the plan;
changes on the Board, Committee, or Trustees who administer
the funding status of the plan; and
any other relevant information,
arrangements for portability or the payment of benefits in the event
benefits shall either be payable in the form of a pension or valued and
benefits may not, under the plan, be able to be commuted and paid in the form of a lump sum cash settlement.
In this subsection — “international pension plan” means a pension plan which provides pensions for the employees of an employer, or a group of affiliated employers, in more than one country.
If an employer to which subsection (4)(a) refers employs a Caymanian employee, then the employer shall enroll that employee in a plan registered in accordance with subsection (1). Section 7 National Pensions Act (2024 Revision) Page 18 Revised as at 31st December, 2023 c
A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of ten thousand dollars or to imprisonment for a term of one year, or to both.
In this section — “Caymanian” has the meaning assigned to it by the Immigration (Transition) Act (2022 Revision);