The Plan at a Glance
Contributions
The employee and employer must contribute an amount that, when combined, equals 10% of the employee’s earnings (up to a maximum combined contribution of CI$6,000 a year). The employer’s share must equal at least 5% of the employee’s earnings. These contributions, referred to as basic contributions, are deposited in an account set up in the employee’s name.
In addition to basic contributions, the employee can make additional voluntary contributions (AVCs). AVCs are also deposited in the employee’s account.
When an employee can retire
The normal retirement date is the first of the month on or after the employee’s 60th birthday. However, the employee can retire earlier – as early as the first of any month on or after his/her 50th birthday. Alternatively, the employee can postpone retirement beyond his/her normal retirement date.
What an employee gets at retirement
When an employee retires, he/she will have two options for receiving retirement benefits: an annuity or a retirement income fund.
- If the employee elects the annuity option, all of his/her Silver Thatch investments will be cashed in and the money used to buy an annuity.
- If the employee elects the retirement income fund option, a portion of his/her Silver Thatch investments will be cashed in and paid to them immediately. The remainder will be cashed in and paid to the employee in regular installments throughout retirement.
If an employee moves to another employer
If an employee moves to another employer that does not participate in Silver Thatch, that employee will have two options:
- Leave his/her investments in the Silver Thatch Pensions Plan where they will continue to accumulate investment earnings. At retirement, the money will be used to provide the former employee with a retirement income.
- Transfer the cash value to the pension plan of his/her new employer (provided that plan complies with the National Pensions Law).
If an employee leaves the Cayman Islands
If an employee stops working in the Cayman Islands and leaves the islands, he/she can, subject to certain restrictions, either:
- receive the cash value of his/her investments; or
- transfer the cash value to another pension plan.
MEMBERS PLEASE NOTE:
Keep in mind that once you cease to reside in the Cayman Islands permanently, you are eligible for redemption.
- If benefits are greater than CI$5,000, you are eligible for redemption after a period of two years.
- If benefits are less than CI$5,000, you are eligible for redemption after a period of three months.
The Trustees of Silver Thatch Pensions require proof of residence outside the Cayman Islands to support your application. |
Investment of an employee’s account
The employee’s basic contributions (employee and employer) are directed automatically to one or two of three profile investment portfolios – conservative, balanced or growth – based on the age, income range and marital status. Funds are shifted automatically if there is a significant change in the employee’s personal profile.
The employee decides how to invest his/her additional voluntary contributions AVCs. The employee can pick from five available investment portfolios. These include the three portfolios available for basic contributions, plus an ultra-conservative income portfolio and an aggressive growth portfolio for AVCs.
Death before retirement
If an employee has a spouse and dies before starting to receive retirement benefits, his/her Silver Thatch investments will be re-registered in the name of the spouse.
If an employee does not have a spouse, his/her investments can be cashed in by his/her personal or estate representative.
Death after retirement
The survivor benefits payable will depend on the pension option the employee selects at retirement. (See more at details on survivor benefits).
Questions about the Plan?
Please refer to the FAQs section for answers or download either the Member Handbook or the Employer Handbook for greater detail on the Plan.
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