(CNS): The Cayman Islands government will make three more mandatory payments of pension contributions in the private sector, despite concerns that this long vacation will pose serious problems for the country in the coming years. The month has been extended. Opposition has called for an extension of the pension payment freeze until the end of the year in the face of a surge in inflation, but Prime Minister Wayne Panton said in a recent statement to Congress that he did not exclude it, but that concerns him. Gave the cause of.
More than two years have passed since the former PPM-led government allowed people to withdraw lump sum payments from pension funds and then implemented compulsory payment holidays by both employers and workers to survive the pandemic. Did. However, as a result of border closures and a general collapse from a pandemic, the economic situation for many remains difficult. These difficulties were exacerbated by inflation, making it very difficult for SMEs and low-wage workers to return to mandatory monthly payments.
CIG must weigh this immediate remedy for thousands of people over concerns about the long-term implications for future severance and the potential for increased support that pensioners will need in the future. It didn’t become.
On June 9, Mr Pantone said the government was considering extending the leave, noting that more than $ 450 million was withdrawn from the pension fund, which balances with other proposals. Had to take. He said it helped and believed it was the right decision at the time.
However, by addressing the “current situation” in this way, they “long-term to the public” when other approaches to address inflation, uncertain economic conditions, and potential recessions became available. It caused a lot of pain. “
Pantone spoke on social media Wednesday evening, saying the government is struggling to make a decision to help some people in the short term, but the national pension system is no longer fit for purpose. He said the leave had already had a negative impact on pensions, which was kicking the can.
He said the pension system needs reform, which is on the agenda of PACT. Nonetheless, he said the government is likely to extend the vacation by another three months to help people survive the harsh hot summer months.
Modified The rules have been published On Friday evening, we confirmed a three-month extension of the suspension of compulsory pension payments by both employers and employees.