Past governments in the Cayman Islands have a lot to hold their heads high about when it comes to employee benefits here in the Cayman Islands.
The fact that everyone from dishwashers to high level CEO’S has the benefit of mandatory health insurance and pension contributions stands as one of the great things we can look at here in the Cayman Islands and be proud of.
I’m concerned that while instituting a pension holiday sounds good for both businesses and employees right now in tough times, we are not going to want to go back to contributing the mandatory pensions when times get better again.
After a couple of months of not contributing to pensions and seeing your take home pay go up, who would naturally want to go back to decreasing it again. I wouldn’t and neither would many other people. I know very well that everyone who receives their pension statements has to sit down first before wrapping their head around the huge losses that are occurring on every statement.
With this in mind, I believe that the idea of investing our pension payments locally is the best idea for Cayman as a country. Yes, the returns won’t be as fat as they were two years ago but you will be actually able to see the benefits here in Cayman with new home grown infrastructure and development.
That’s why I am borrowing a line from former United States president George Bush to say that we should ‘stay the course’ when it comes to both employers and employees contributing to their pensions.
Though that is probably the first and last time I would ever mention George Bush and anything positive together, the phrase does fit well with this situation.