While both pension providers and regulators in the Cayman Islands have privately admitted for some time that the current system isn't working properly, there have been some concerns expressed about government's latest proposal to fix the problem.

Education Minister Rolston Anglin told the Caymanian Compass last week that government was at least considering the abolition of Cayman's National Pensions Office, shifting that agency's responsibility partly to the Cayman Islands Monetary Authority and partly to the Department of Employment Relations. 

Mr. Anglin's comments were made the day before Complaints Commissioner Nicola Williams announced her office was investigating the national pension system and why some 670 companies were delinquent with payments owed to employees.

Both National Pensions Board Chairman Orren Merren and Deputy Chair Rhonda Kelly had not responded by press time to Compass questions regarding government's proposed shake-up, or the complaints commissioner's probe.

Acting Pensions Superintendent Amy Wolliston also did not respond to questions by press time.

The only National Pensions Board member who did go on the record about the issue was local business owner William Adam.

"Since the inception of the National Pensions Law in 1997 making pensions mandatory, it is a fact that all government administrations have miserably failed to support the National Pensions Office and the National Pensions Board," Mr. Adam said. "Government launched the good vessel 'pension' before it was ready."

"Pirates – employers - are also stealing the cargo even before it can be loaded on the vessel and the pension police virtually ignore calls from the crew to defend the cargo," he continued.

Mr. Adam also expressed concern about moving the regulatory functions now handled by the pensions office to the monetary authority.

"Now, in the middle of a financial hurricane, government is reported to be proposing to split the cargo between two other vessels – Labour Office and CIMA – with records of not protecting Cayman Islands workers," Mr. Adam said. "This is not good seamanship, nor good governance."

Mr. Anglin stressed that no final decision has been made, and that government officials planned to meet with the pensions board this week to discuss the matter.

He noted that the change-over, at least on the regulatory side, has happened with other industries in Cayman.

"Don't forget that before [Cayman] used to have a superintendent of banks and a superintendent of insurance...they are now all housed at CIMA…" he said.

In fact, former Pensions Superintendent Cyril Theriault even questioned why his position was needed. Mr. Theriault's comments came during a Chamber of Commerce event last year (see Compass, 18 June, 2009 "Human Resources Authority considered"). 

There are other models used by the Cayman Islands government - for instance, in the provision of health care - where the regulatory duties are handled by the monetary authority and a separate board takes care of labour and product quality issues. 

The Health Insurance Commission is established to take care of complaints in those areas. 

Eventually, however, Mr. Anglin said he'd like to move all labour-related complaints under one roof - possibly the Department of Employment Relations. 

"So you have a one-stop shop for your labour infractions," he said. 

Mr. Anglin said he hadn't heard Mr. Adam's comments about perceived shortcomings at the monetary authority and the labour department expressed in a public forum.

"I haven't heard that complaint in insurance, and every insurance company has policyholders, every bank has banking deposits," he said. "Anyone that's saying that might tell me that it's someone with a vested interest, that is either ill-informed or who will resist change."

Mr. Adam said his sole concern was for the Cayman Islands and the future health of the retirement system.

"If these changes are made then future generations' workers [will be] highly taxed to fund old people's sustenance payments and their pension funds will be siphoned off," he said.