Most retirees who opted to receive monthly payments on their Retirement Savings Arrangement accounts will see a slight increase in the amount deposited into their bank starting this month.
The Department of Labour and Pensions issued a new guidance note increasing the maximum annual withdrawal amount to $15,400, up $400 from the previous maximum of $15,000.
In a press release issued 31 July by the department, Director Bennard Ebanks stated, “By increasing the annual disbursement for retirees in line with the increased consumer price index, it will assist in coping with the increased costs. We will continue to monitor the CPI to guide subsequent increases.”
After staying stagnant at $12,000 for 18 years, the maximum annual withdrawal amount was finally increased to $12,480 in January 2017. More than five years passed until that amount was increased to $12,900 in April 2022. Since that time, however, in response to inflation, the amount has steadily increased. In July 2023 there was a 9.5% increase to $14,125, followed by a 6.2% increase to $15,000 on 1 June 2024.
This year’s increase amounts to only 2.6% – $33.33 per month for most recipients – but will nonetheless give pensioners a little more money.
All disbursal applications received from 1 Jan. 2025 and all previously approved Retirement Savings Arrangement accounts will be entitled to the new maximum figure at their next disbursement. Retirees who have already taken their maximum annual disbursement between 1 Jan. and 31 July 2025, will generally be eligible for a supplemental payment of $400 to make up the difference between the old annual withdrawal amount and the new figure.
The updated schedule outlines the maximum annual withdrawal amounts based on a member’s age, ensuring clarity and consistency for pension administrators and beneficiaries alike. In cases where the calculated amount exceeds $15,400, members may withdraw up to the full calculated maximum.
For members aged 89 or older, the policy allows for the option of withdrawing the full Retirement Savings Arrangement account balance as a lump sum at the beginning of any calendar year, provided 60 days’ written notice is given.
Members also retain the option at any time to terminate their Retirement Savings Arrangement account and transfer the remaining balance to an approved annuity.
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Slap in the face to our retirees. Save all your life and the government owns your money and says “ you can’t spend it how you choose”. The pension scheme is a scam.
I suppose everyone is happy , living large and an “entitled caymanian” as the bumper stickers say because frankly no one raises the issue when voting comes around. Y’all are happy working 40 years and being told you can have barely enough to cover groceries for a month. Let alone if you need to buy a car or travel, then what.