The Department of Labour and Pensions recovered $1.2 million in outstanding pension contributions from delinquent companies in 2025.
That figure includes a case in which more than US$600,000 was recovered from one company, as the department stepped up enforcement against non-compliant employers.
The employment ministry is also looking to introduce a requirement for businesses to provide proof of pension compliance in order to renew their annual trade and business licence.
The figures and policy proposal come amid concern about the rising number of companies that are behind on pension payments.
Employment Minister Michael Myles revealed last month that 2,100 companies are currently listed as delinquent, with an estimated $14 million in unpaid contributions outstanding.
The minister acknowledged that a large chunk of those funds could be unrecoverable because the companies had gone out of business.
The department is currently working with pension plan administrators, the Department of Commerce and Investment, and Workforce Opportunities and Residency Cayman on cross-audits that it expects will produce a clearer picture of the true scale of active delinquency among existing businesses.
A Department of Labour and Pensions spokesperson said enforcement was proceeding in an effort to recover funds for employees.
In one recent case, the DLP said it collaborated with police and prosecutors to secure a delinquent employer’s personal assets in order to ensure outstanding contributions were paid.
Looking ahead, the department said it plans to reintroduce a requirement for proof of pension compliance as part of the trade and business licensing process.
“With the support of Minister Myles, the DLP will be collaborating with the Department of Commerce and Investment to reintroduce the requirement for proof of pension compliance, as a part of our overall strategy to build a culture of compliance with employers,” the spokesperson said.
Under Cayman law, the mandatory total contribution rate is 10% of salary. Employers are authorised to deduct 5% from an employee’s earnings and contribute a matching 5% themselves, though some employers pay more.
The DLP said enforcement action is triggered when an employer fails to resolve arrears in a timely manner after being identified as non-compliant, typically through reports from pension plan administrators or complaints from employees.
“Whenever a non-compliant business is identified, if in the first instance the matter cannot be resolved by getting outstanding contributions paid in a timely manner, then DLP will initiate enforcement action,” the spokesperson said.
In a Radio Cayman interview last month, Myles urged workers to check their pension contributions.
Myles added that employees should keep an eye on their pension statements and raise the alarm if they were not being paid.
“They are really the first line of defence … the employee’s responsibility is to be very vigilant in what’s going into their pension fund.”
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