Saxon Administration Ltd., agents for Silver Thatch Pensions, is urging the public to avoid incurring interest penalties by taking note that the deadline for submitting pension payments for the month of April is quickly approaching – May 15th. May is the first month this deadline will be strictly enforced.
‘To reiterate the importance of this law, and to ensure the consequence of this law is fully appreciated and understood, our Silver Thatch team recently underwent training with the Superintendent and Deputy Superintendent of Pensions which focused primarily on the enforcement of this law,’ commented Assistant Pensions Manager Cheryl Myles.
The National Pensions Law stipulates that all monthly contributions are required to be submitted to the plan administrator within 15 days of month-end. If the funds are not received by the administrator within this period, then Section 50 of the law stipulates that an employer shall be liable to pay interest to a pension fund on all monies due. Interest would be at the prime rate in the Islands plus five percent and calculated on a daily basis.
While this law was established many years ago, the interest penalty provision has not been strictly enforced. However, Silver Thatch, as well as all other pension providers on Island, recently received a memo from the National Pensions Board, via the Superintendent of Pensions, instructing that ‘multi-employer pension plan administrators will be required to strictly enforce the payment dates and interest penalty provisions of the law’.
Effectually this means:
• Effective 1 May, under the requirements of the law, contributions for the month of April, are to be received by the office or bank of Silver Thatch Pensions no later than 15 May.
• If the contribution for the month is not received prior to the deadline – interest will be charged on that contribution on a daily basis from 16 May until the contribution is received at the office or bank of Silver Thatch Pensions.
Silver Thatch Pensions will calculate all interest payable, and subsequently issue an invoice that must be paid along with the following month’s contributions.
The contribution sheet will clearly evidence the interest payments separate from the standard monthly contributions.
‘It is our intention to make sure our clients are informed, as well as the local community as a whole. We want to ensure that individuals are not being negatively affected by this recent development due to not being informed, and consequently being forced to pay avoidable interest and penalty fees,’ said Silver Thatch Finance Manager Sharon Pegg. ‘As always, please do not hesitate to contact our office for additional assistance on this matter.’
Saxon is a pension services provider in the Cayman Islands powered by dynamic people using superior technology. Delivering client and administrative services to more than 12,000 individual account holders with assets in excess of $190 million, Saxon has gained an enviable reputation and is recognized as a leader in its market. Facilitated by investments in technology, Saxon is capable of providing flexible solutions in both the onshore and offshore pension environment while maintaining a personal approach to client relationships.