{"kind":"expression","expression":{"expr_id":"2194","doc_id":"2194","label":"Public Service Pensions (Amendment) Law, 2019 (Law 23 of 2019)","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/bill\/2019\/23\", \"expression\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01\", \"manifestation\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01.pdf\"}, \"pdf\": {\"md5\": \"f082a1e96043eab16d38b3dd54dd6466\", \"path\": \"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0023\/2019-0023.pdf\", \"pages\": 18, \"filename\": \"2019-0023.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 4759, \"paragraph_count\": 16, \"text_char_count\": 30039}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": null, \"doc\": null, \"bill\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"PUBLIC SERVICE PENSIONS (AMENDMENT) BILL, 2019 A BILL FOR A LAW TO AMEND THE PUBLIC SERVICE PENSIONS LAW (2017 REVISION) TO CHANGE THE MANNER OF CALCULATING PENSIONS; TO PROVIDE FOR A LONGER PERIOD FOR CASH-OUT PAYMENTS; TO SECURE ASSETS OF THE FUND BY ENABLING INVESTMENT DIVERSIFICATION; AND FOR INCIDENTAL AND CONNECTED PURPOSES Introduced PUBLISHING DETAILS Public Service Pensions (Amendment) Bill, 2019 Objects and Reasons Introduced Memorandum of OBJECTS AND REASONS This Bill seeks to amend the Public Service Pensions Law (2017 Revision) (\u201cthe principal Law\u201d). Clause 1 provides the short title of the legislation. Clause 2 redefines certain terms in the principal Law such as, among other things, the terms \u201ccredited rate of return\u201d, \u201cdesignated beneficiary\u201d and \u201cformer participant\u201d; it renames a \u201cparticipant\u201d as a \u201cplan member\u201d; it inserts definitions of \u201cInvestment Committee\u201d and \u201cpublicly traded company\u201d; and it deletes the definition of the words \u201ctraded publicly\u201d. Clause 3 amends the principal law to provide that it be amended by deleting the word \u201cparticipant\u201d wherever it appears in the Law and substituting the words \u201cplan member\u201d. Clause 4 amends section 5 of the principal Law to provide that the Public Service Pensions Board may act by committee or sub-committee or may delegate any of its powers to such committees, sub-committee or to any of their members. Clause 5 amends section 6 of the principal Law to provide that the Board shall be responsible for the oversight and monitoring of the Administrator, the Investment Committee and any other committees or sub-committees appointed by the Board in accordance with section 5 of the principal Law; and when exercising its fiduciary responsibility the Board shall act in the best interests of the plan members and beneficiaries of the Fund. Clause 6 amends section 16 of the principal Law in order to re-confirm that the Board will invest the Fund in accordance with recognised international practices. Among other provisions, the amendment to section 16(3) of the principal Law provides that the Board shall invest the Fund in such a manner to ensure that there is no undue risk of loss or impairment to the Fund, including by ensuring diversification of the investments of the Fund. Clause 7 amends section 25 of the principal Law to deal with the circumstance where the Administrator may transfer or assign a pension. Clause 8 amends section 26 of the principal Law to change the provisions relating to pay out of pensions to non-resident non-Caymanians who have left the Service and ceased to reside in the Islands. Objects and Reasons Public Service Pensions (Amendment) Bill, 2019 Introduced Clause 9 amends section 35 of the principal Law to provide that a deferred vested plan member in the defined benefit part of the Plan whose services were terminated prior to retirement age but is unable to work due to permanent disability certified by the Chief Medical Officer is eligible to retire on those grounds. Clause 10 inserts an exception to vesting in section 40 of the principal Law with the words \u201c, except that where the pension or a part of the pension is transferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d. Clause 11 amends section 52 of the principal Law to provide that a deferred vested plan member in the defined contribution part of the Plan whose services were terminated prior to retirement age but is unable to work due to permanent disability as certified by the Chief Medical Officer is eligible to retire on those grounds. Clause 12 inserts an exception to vesting in section 56 of the principal Law with the words \u201c, except that where the pension or a part of the pension is transferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d. Clause 13 repeals and replaces Schedule 1 of the principal Law which deals with the constitution and procedure of the Board and the powers of the Managing Director. It is proposed that the responsibilities of the Board be focused on strategy and ensuring accountability of Executive Management. It is also proposed that the Managing Director would be focused on the execution of the adopted strategy including plan design and structure, delegating to Plan fiduciaries and the Plan actuary, and oversight and monitoring the administration of the Plan, amongst other operational responsibilities. Clause 14 repeals and replaces Schedule 2 of the principal Law to further secure the assets of the Fund by enabling wider investment diversification through best practice portfolio management and, pursuant to the advice of investment professionals, to meet required benefit payments to plan members and the expenses of the Plan. Clause 15 provides a savings provision. Public Service Pensions (Amendment) Bill, 2019 Arrangement of Clauses Introduced PUBLIC SERVICE PENSIONS (AMENDMENT) BILL, 2019 Arrangement of Clauses Clause 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Repeal of Schedule 1 and substitution- constitution and procedure of the Board; duties of 14.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Public Service Pensions (Amendment) Bill, 2019 Clause 1 Introduced PUBLIC SERVICE PENSIONS (AMENDMENT) BILL, 2019 A BILL FOR A LAW TO AMEND THE PUBLIC SERVICE PENSIONS LAW (2017 REVISION) TO CHANGE THE MANNER OF CALCULATING PENSIONS; TO PROVIDE FOR A LONGER PERIOD FOR CASH-OUT PAYMENTS; TO SECURE ASSETS OF THE FUND BY ENABLING INVESTMENT DIVERSIFICATION; AND FOR INCIDENTAL AND CONNECTED PURPOSES ENACTED by the Legislature of the Cayman Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Law may be cited as the Public Service Pensions (Amendment) Law, 2019.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of section 3 of the Public Service Pensions Law (2017 Revision)-definitions 2. The Public Service Pensions Law (2017 Revision), in this Law referred to as \u201cthe principal Law\u201d, is amended in section 3 \u2014 (a) by deleting the definition of \u201ccredited rate of return\u201d and substituting the following definition \u2014 \u201c \u201ccredited rate of return\u201d means \u2014 (a) the rate of investment return to be credited to accounts on an account adjustment date, as determined by the Administrator Clause 2 Public Service Pensions (Amendment) Bill, 2019 Introduced on 13th April, 1999, and at the end of each calendar year up to such date as the Cabinet may for this purpose in writing appoint and \u2014 (i) where on or after 14th April, 1999 an account adjustment date is the last day of a calendar year the credited rate of return shall be the average rate of investment return on Fund investments for that calendar year and the two immediately preceding calendar years; and (ii) where an account adjustment date does not fall on the last day of a calendar year, the credited rate of return shall be the credited rate of return that was applied on the previous account adjustment date prorated for the period of the year up to such account adjustment date; (b) with respect to plan member\u2019s contributions made to the Fund under the prior law credited to a plan member\u2019s contribution account on the 14th April, 1999 under section 30(2), the average rate of investment return on Fund investments for the period commencing on the date the Fund was established under the prior law and ending on the 13th April, 1999, as determined by the Administrator; and (c) the rate of investment return to be credited to accounts on account adjustment date, as determined by the Administrator with effect from the first calendar quarter following the 31st day of December, 2018 and at the end of each calendar quarter \u2014 (i) where on or after the 31st day of December, 2018 an account adjustment date is the last day of the calendar quarter, the credited rate of return shall be the average for the twelve months immediately preceding that calendar quarter; and (ii) where an account adjustment date does not fall on the last day of a calendar quarter, the credited rate of return shall be the credited rate of return that was applied on the previous account adjustment date prorated for the period of the calendar quarter up to such account adjustment date;\u201d; (b) by deleting the definition of \u201cdesignated beneficiary\u201d and substituting the following definition \u2014 \u201c \u201cdesignated beneficiary\u201d means a person designated by the Plan member under section 19 to receive benefits under section 43, 60, 62, 63 or 65 or any other benefits not specified for payment to a Public Service Pensions (Amendment) Bill, 2019 Clause 3 Introduced plan member\u2019s spouse or children or an entity in the event of the plan member\u2019s death;\u201d; (c) by inserting in the appropriate alphabetical order the following definition \u2014 \u201c \u201cdirector\u201d means a member of the Board;\u201d; (d) by deleting the definition of \u201cformer participant\u201d and substituting the following definition \u2014 \u201c \u201cformer plan member\u201d means a plan member who terminated employment and remains in the Service or who ceased to accrue benefits prior to being qualified for retirement under the Plan;\u201d; (e) by inserting in the appropriate alphabetical order the following definition \u2014 \u201c \u201cInvestment Committee\u201d means the Committee established by the Board pursuant to section 5(2C) and specified in Schedule 1;\u201d; (f) in the definition of \u201cmember\u201d by inserting after the word \u201cBoard\u201d the words \u201cor a committee or sub-committee of the Board\u201d; (g) by deleting the definition of \u201cparticipant\u201d; (h) by inserting in the appropriate alphabetical order the following definition \u2014 \u201c \u201cplan member\u201d means an employee in Service, an employee on an approved leave of absence or an employee who has retired or resigned from Service on pensionable terms;\u201d; (i) by inserting in the appropriate alphabetical order the following definition \u2014 \u201c \u201cpublicly traded company\u201d means a company whose stock is traded on \u2014 (a) a stock exchange in the Islands; or (b) any other exchange recognized by internationally recognized credit rating agencies on which securities are traded, if the prices at which the securities have been traded on such market are regularly published in a newspaper or business or financial publication of general or regular paid circulation;\u201d and (j) by repealing the definition of \u201ctraded publicly\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of the principal Law-deletion of the word \u201cparticipant\u201d and substitution 3. The principal Law is amended by deleting the word \u201cparticipant\u201d wherever it appears in the Law and substituting the words \u201cplan member\u201d. Clause 4 Public Service Pensions (Amendment) Bill, 2019 Introduced\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of section 5- Public Service Pensions Board 4. The principal Law is amended in section 5 as follows \u2014 (a) by inserting after subsection (2) the following subsection \u2014 \u201c(2A) The Board may \u2014 (a) act by committee or sub-committee; and (b) delegate by instrument in writing any of its powers and duties to a committee or sub-committee and to any of their members.\u201d; and (b) in subsection (3) \u2014 (i) by inserting after the word \u201cBoard\u201d the words \u201cor of any committee appointed by the Board\u201d; and (ii) by deleting the words \u201cPublic Service Pensions\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Amendment of section 6- powers and duties of the Board 5. The principal Law is amended in section 6 as follows \u2014 (a) by inserting after subsection (1A) the following subsection \u2014 \u201c(1B) The Board shall be responsible for the oversight and monitoring of the Administrator, the Investment Committee and any other committees or sub-committees appointed by the Board in accordance with section 5; and when exercising its fiduciary responsibility the Board shall act in the best interests of the plan members and beneficiaries of the Fund.\u201d; and (b) in subsection (3), by deleting the words \u201cNo member or employee of the Board\u201d and substituting the words \u201cNo director, member of a committee or sub-committee of the Board or employee of the Board\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Amendment of section 16- fund investments 6. The principal Law is amended in section 16 as follows \u2014 (a) by repealing subsection (1) and substituting the following subsection \u2014 \u201c(1) The Fund shall be invested by the Board in a manner consistent with \u2014 (a) best-practice portfolio management; (b) the Board\u2019s duty to avoid undue risk of loss or impairment pursuant to subsection (3); (c) the Board\u2019s duties of care, diligence and skill pursuant to subsection (4); and (d) the investment policies and procedures formulated in accordance with subsection (5).\u201d; Public Service Pensions (Amendment) Bill, 2019 Clause 7 Introduced (b) by repealing subsection (3) and substituting the following subsection \u2014 \u201c(3) The Board shall invest the Fund in such a manner to ensure that there is no undue risk of loss or impairment to the Fund, including by ensuring diversification of the investments of the Fund, and pursuant to the advice of the Investment Committee and any investment managers appointed by the Board under subsection (2).\u201d; and (c) by inserting after subsection (4) the following subsection \u2014 \u201c(5) The Board shall establish, maintain and adhere to investment policies and procedures that are consistent with its duties under subsections (1), (3) and (4) and that covers, among any other relevant issues \u2014 (a) the classes of investments in which the Fund is to be invested and the selection criteria for investments within those classes; (b) the determination of benchmarks or standards against which the performance of the Fund as a whole, classes of investments and individual investments will be assessed; (c) standards for reporting the investment performance of the Fund; (d) the balance between risk and return in the overall Fund portfolio; (e) the fund management structure; (f) the use of options, futures and other derivative financial instruments; (g) the investment in private equity funds, hedge funds and funds that invest in infrastructure; (h) the management of credit, liquidity, operational, currency, market and other financial risks; (i) the retention, exercise or delegation of voting rights acquired through investments; (j) the method of, and basis for, valuation of investments that are not regularly traded at a public exchange; and (k) the prohibition, restriction, constraint or limit on any investment.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Amendment of section 25- pensions not to be assignable 7. The principal Law is amended in section 25 \u2014 (a) by renumbering the existing section as section 25(1); and Clause 8 Public Service Pensions (Amendment) Bill, 2019 Introduced (b) by inserting after subsection (1) as renumbered the following subsections \u2014 \u201c(2) A pension provided under this Law shall not be transferable or assignable by the Administrator, except for the purpose of satisfying \u2014 (a) a debt due to the Government, a statutory authority or a Government company, where there is no dispute as to the debt or the amount of any deduction from a pension to satisfy that debt; or (b) an order of a court for the payment of periodical sums of money towards the maintenance of the spouse, former spouse or minor child of the Plan member to whom the pension has been granted.\u201d; and (3) Where there is a dispute, a party to the dispute may submit the dispute to binding arbitration under the Arbitration Law 2012.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Amendment of section 26- non-resident non-Caymanians 8. The principal Law is amended by repealing section 26(1) and substituting the following subsections \u2014 \u201c(1) Notwithstanding any provision to the contrary, a retired or deferred vested plan member who became a plan member before the date of the commencement of this amending Law, who \u2014 (a) is not the holder of Caymanian status as defined in section 26 of the Immigration (Transition) Law, 2018; and (b) ceases to reside in the Islands, may, upon such cessation in residency, elect to receive the present value of the remainder of his accrued benefit (actuarially adjusted to take into account any benefits already paid to the plan member pursuant to any of the other forms of benefit available to the plan member or due to any prior distribution) in a single lump sum cash payment payable within one month after the plan member so ceases to be resident in the Islands. (1A) For the purposes of subsection (1)(b), a person shall be considered to have ceased to be resident in the Islands when that person no longer has a legal right to reside in the Islands and has been absent from the Islands for a period of not less than two months; and, in calculating a period of absence, no account shall be taken of a period of stay in the Islands, as a visitor or transit passenger, for a continuous period of three weeks or less. Public Service Pensions (Amendment) Bill, 2019 Clause 9 Introduced (1B) Notwithstanding any provision to the contrary, a retired or deferred vested plan member who became a plan member after the date of the commencement of this amending Law, who \u2014 (a) is not the holder of Caymanian status as defined in section 26 of the Immigration (Transition) Law, 2018; and (b) ceases to reside in the Islands, may, upon such cessation in residency, elect to receive the present value of the remainder of his accrued benefit (actuarially adjusted to take into account any benefits already paid to the plan member pursuant to any of the other forms of benefit available to the plan member or due to any prior distribution) in a single lump sum cash payment payable within one month after the plan member so ceases to be resident in the Islands. (1C) For the purposes of subsection (1B)(b), a person shall be considered to have ceased to be resident in the Islands when the person no longer has a legal right to reside in the Islands and has been absent from the Islands for a period of two years or more; and, in calculating a period of absence, no account shall be taken of a period of stay in the Islands, as a visitor or transit passenger, for a continuous period of three weeks or less. (1D) The provisions of subsections (1) to (1C) shall not apply until 1st January 2020 and the provisions of the principal Law which are in force immediately prior to the date of the commencement this amending Law shall continue in force until such commencement.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Amendment of section 35- disability retirement 9. The principal Law is amended in section 35(1) by inserting after the word \u201cactive\u201d the words \u201cor a deferred vested\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Amendment of section 40- vesting 10. The principal Law is amended in section 40 by deleting the full stop and substituting the words \u201c, except that where the pension or a part of the pension is transferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Amendment of section 52- disability retirement 11. The principal Law is amended in section 52(1) by inserting after the word \u201cactive\u201d the words \u201cor a deferred vested\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Amendment of section 56- vesting 12. The principal Law is amended in section 56 by deleting the full stop and substituting the words \u201c, except that where the pension or a part of the pension is transferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d. Clause 13 Public Service Pensions (Amendment) Bill, 2019 Introduced 13. Repeal of Schedule 1 and substitution- constitution and procedure of the Board; duties of the Managing Director 13. The principal Law is amended by repealing Schedule 1 and substituting the following Schedule \u2014 \u201cSchedule 1 (Section 5) Part 1 - Constitution and procedure of the Board and of any committee appointed by the Board 1. (1) Subject to sub-paragraph (2), the Board shall consist of the following directors \u2014 (a) the Financial Secretary (ex officio); (b) the Chief Officer, Portfolio of the Civil Service (ex officio); (c) the President of the Cayman Islands Civil Service Association (CICSA) (ex officio) or his nominee; (d) subject to paragraph 2, five directors appointed by the Governor who are neither employees in the Public Service nor Other Public Service; and (e) the Managing Director (ex officio and non-voting). (2) The Board, after being constituted under sub-paragraph (1) may appoint as a member of the Board an active defined contribution plan member under the Plan who has been nominated by active members. 2. In appointing the directors under paragraph 1(1)(d) the Governor shall ensure that \u2014 (a) one of the directors has substantial professional investment experience; (b) one of the directors is an attorney-at-law with substantial fiduciary expertise; and (c) one of the directors is a retired plan member under the Plan. 3. The chairman shall be appointed by the Governor from among the five directors appointed by the Governor and, in the absence of the chairman, a temporary chairman may be approved by the directors in attendance. Public Service Pensions (Amendment) Bill, 2019 Clause 13 Introduced 4. The Managing Director may designate an officer of the staff or other staff of another entity to act as secretary to the Board, the Investment Committee and any other committees or sub-committees established under this Law. 5. A director who is appointed by the Governor or by the Board shall hold office at the Governor\u2019s or the Board\u2019s pleasure respectively, for a four year term but, at the discretion of the Governor or the Board as the case maybe, may be appointed for two additional consecutive terms of two years. 6. A director who is appointed by the Governor or by the Board may resign his office at any time in writing addressed to the Governor or the Board and shall cease to be a director from the date of the receipt of such resignation by the Governor or by the Board. 7. Where a director resigns under paragraph 6 the Governor shall appoint or the Board select a new director for the remaining term of the former director. 8. The Board shall meet at least once in every three calendar months. 9. A director shall be deemed to be present at a meeting of the Board, the Investment Committee or of any other committee or sub-committee of the Board if the member physically attends or participates in the meeting by conference telephone or by some other conference facility. 10. The Board\u2019s proceedings shall be governed by standing orders prepared by the Board and such standing orders shall be kept under review, and may be amended, by the Board. 11. There is established a committee to be known as the Investment Committee to whom the Board may delegate its authority with respect to the investment of Fund assets. 12. (1) The Investment Committee shall be comprised of the following members \u2014 (a) the Managing Director; (b) a plan member representative who is a director; (c) the member with substantial professional investment experience from the Board appointed under paragraph 1(d); and (d) not more than two other individuals with substantial professional investment experience, who may be a current director of the Board (excluding the Chairman). (2) In addition to delegating any of its powers set out in the Law with respect to the investment of the Fund, the Board may delegate to the Clause 13 Public Service Pensions (Amendment) Bill, 2019 Introduced Investment Committee the authority to set asset allocation ranges, evaluate and monitor investment performance and make recommendations to the Board in respect of all other areas related to the Fund\u2019s investment strategy and programme. 13. The Governor or the Board, respectively shall terminate the appointment of any director so appointed by the Governor or the Board who, \u2014 (a) resigns his office; (b) becomes of unsound mind or incapable of carrying out his duties; (c) becomes bankrupt, suspends payment to or compounds with his creditors; (d) is convicted in the Islands or any other jurisdiction of an offence involving dishonesty, fraud or any indictable offence; (e) commits serious misconduct in relation to his duties; or (f) is absent without leave for three or more consecutive meetings. Part 2 - Duties of the Managing Director The Managing Director is entrusted with the day to day operations of the Plan and any other plan administered by the Board and has the following duties \u2014 (a) providing instructions to any investment managers appointed by the Board under section 16(2); (b) managing the cash flow of the Fund; (c) delegating tasks relating to the overall management of the Fund to selected employees and or selected agents retained by the Board, including the actuaries, investment advisor and other  fiduciaries of the Plan; (d) assisting auditors; (e) developing funding policies; (f) interpreting the Plan or any other Plan administered by the Board; (g) execution of adopted strategies including plan design and structure; (h) ensuring an education programme is in place for the Board its committees and sub-committees; (i) the preparation of reports of the Board required under this Law; Public Service Pensions (Amendment) Bill, 2019 Clause 14 Introduced (j) hiring staff and providing oversight and monitoring of the administration of the Plan among other operational responsibilities; and (k) reporting to the Board on activities, at least annually, and performing such other duties as the Board, in its discretion, may assign.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Repeal of Schedule 2 and substitution- approved investments 14. The principal Law is amended by repealing Schedule 2 and substituting the following Schedule \u2014 \u201cSchedule 2 (Section 16) Approved Investments 1. This Schedule of approved investments is intended to provide guidance to the Board with respect to Fund investments and is not intended to be restrictive to the specific asset classes and sub-classes designated below. 2. The Fund\u2019s investment policy is designed to be a fully invested portfolio, reflecting the broad spectrum of long-term risks and opportunities in the global economy and financial markets (without taking undue risk of loss or impairment), taking into account the actuarial assumptions and funding requirements of the Plan and maintaining adequate liquidity to meet required benefit payments to plan members and expenses of the Plan. 3. Subject to paragraph 4, the list of approved investments in paragraph 5 may be held in segregated arrangements or through holding units in an open-end or closed-end mutual, collective or pooled fund, a private equity fund, a hedge fund, or a fund that invests in infrastructure. 4. Funds specified under paragraph 3 must be listed on a recognized international stock exchange, other than private equity funds, hedge funds or funds that invest in infrastructure. 5. The approved investments, by asset class, are as follows \u2014 (a) Fixed Income Portfolio \u2014 (i) treasury bills; (ii) bonds and notes, including domestic and foreign government bonds, commercial paper and investment grade corporate bonds; Clause 15 Public Service Pensions (Amendment) Bill, 2019 Introduced (iii) cash and cash equivalents; and (iv) guaranteed insurance company contracts; (b) Equity Portfolio\u2014 (i) large cap value and growth of stocks of publicly traded companies; (ii) small and mid-cap stocks of publicly traded companies; (iii) convertible securities of publicly traded companies; (iv) emerging markets stocks; and (v) private equity funds; (c) Alternative Investment Portfolio \u2014 (i) real estate, including real estate investment trusts; (ii) mortgages, asset-backed securities and bank loans; (iii) energy and natural resources; (iv) derivative investment contracts which provide for portfolio protection, such as currency hedging, warrants, options and future contracts; (v) absolute return funds; (vi) hedge funds which are pools of capital from accredited investors or institutions which invest in a variety of assets using risk management techniques; and (vii) funds that invest in infrastructure.\u201d. 15. Savings 15. Where, prior to the date of the commencement of this amending Law, an application was made under the principal Law and the application has not been determined at the date of commencement of this amending Law that application shall be determined as if this amending Law had not come into force. 2. Passed by the Legislative Assembly the       day of                         , 2019. Speaker Clerk of the Legislative Assembly\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2019_01_01\", \"date\": \"2019-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2019_01_01\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2019_01_01\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2019\/23\", \"FRBRdate\": [{\"date\": \"2019-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2019\/23\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"2019-0023\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"23 of 2019\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"bill\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01\", \"FRBRdate\": [{\"date\": \"2019-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/bill\/2019\/23\/eng@2019-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"bill\", \"header\": {\"title\": \"Public Service Pensions (Amendment) Law, 2019 (Law 23 of 2019)\", \"actNumber\": \"23 of 2019\", \"longTitle\": null}}, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nPUBLIC SERVICE PENSIONS\n(AMENDMENT) BILL, 2019\nSupplement No. 1 published with Legislation Gazette No. 25 dated 3rd July, 2019.\nA BILL FOR A LAW TO AMEND THE PUBLIC SERVICE PENSIONS LAW (2017\nREVISION) TO CHANGE THE MANNER OF CALCULATING PENSIONS; TO PROVIDE\nFOR A LONGER PERIOD FOR CASH-OUT PAYMENTS; TO SECURE ASSETS OF\nTHE FUND BY ENABLING INVESTMENT DIVERSIFICATION; AND FOR INCIDENTAL\nAND CONNECTED PURPOSES\n\nPage 2\nIntroduced\nc\n\nPUBLISHING DETAILS\n\nPublic Service Pensions (Amendment) Bill, 2019\nObjects and Reasons\n\nc\nIntroduced\nPage 3\n\nMemorandum of\nOBJECTS AND REASONS\nThis Bill seeks to amend the Public Service Pensions Law (2017 Revision) (\u201cthe\nprincipal Law\u201d).\nClause 1 provides the short title of the legislation.\nClause 2 redefines certain terms in the principal Law such as, among other things, the\nterms \u201ccredited rate of return\u201d, \u201cdesignated beneficiary\u201d and \u201cformer participant\u201d; it\nrenames a \u201cparticipant\u201d as a \u201cplan member\u201d; it inserts definitions of \u201cInvestment\nCommittee\u201d and \u201cpublicly traded company\u201d; and it deletes the definition of the words\n\u201ctraded publicly\u201d.\nClause 3 amends the principal law to provide that it be amended by deleting the word\n\u201cparticipant\u201d wherever it appears in the Law and substituting the words \u201cplan member\u201d.\nClause 4 amends section 5 of the principal Law to provide that the Public Service\nPensions Board may act by committee or sub-committee or may delegate any of its\npowers to such committees, sub-committee or to any of their members.\nClause 5 amends section 6 of the principal Law to provide that the Board shall be\nresponsible for the oversight and monitoring of the Administrator, the Investment\nCommittee and any other committees or sub-committees appointed by the Board in\naccordance with section 5 of the principal Law; and when exercising its fiduciary\nresponsibility the Board shall act in the best interests of the plan members and\nbeneficiaries of the Fund.\nClause 6 amends section 16 of the principal Law in order to re-confirm that the Board\nwill invest the Fund in accordance with recognised international practices. Among other\nprovisions, the amendment to section 16(3) of the principal Law provides that the Board\nshall invest the Fund in such a manner to ensure that there is no undue risk of loss or\nimpairment to the Fund, including by ensuring diversification of the investments of the\nFund.\nClause 7 amends section 25 of the principal Law to deal with the circumstance where the\nAdministrator may transfer or assign a pension.\nClause 8 amends section 26 of the principal Law to change the provisions relating to pay\nout of pensions to non-resident non-Caymanians who have left the Service and ceased to\nreside in the Islands.\n\nObjects and Reasons\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 4\nIntroduced\nc\n\nClause 9 amends section 35 of the principal Law to provide that a deferred vested plan\nmember in the defined benefit part of the Plan whose services were terminated prior to\nretirement age but is unable to work due to permanent disability certified by the Chief\nMedical Officer is eligible to retire on those grounds.\nClause 10 inserts an exception to vesting in section 40 of the principal Law with the\nwords \u201c, except that where the pension or a part of the pension is transferred or assigned\nunder section 25(1)(a)(i) the accrued benefit shall not vest.\u201d.\nClause 11 amends section 52 of the principal Law to provide that a deferred vested plan\nmember in the defined contribution part of the Plan whose services were terminated prior\nto retirement age but is unable to work due to permanent disability as certified by the\nChief Medical Officer is eligible to retire on those grounds.\nClause 12 inserts an exception to vesting in section 56 of the principal Law with the\nwords \u201c, except that where the pension or a part of the pension is transferred or assigned\nunder section 25(1)(a)(i) the accrued benefit shall not vest.\u201d.\nClause 13 repeals and replaces Schedule 1 of the principal Law which deals with the\nconstitution and procedure of the Board and the powers of the Managing Director. It is\nproposed that the responsibilities of the Board be focused on strategy and ensuring\naccountability of Executive Management. It is also proposed that the Managing Director\nwould be focused on the execution of the adopted strategy including plan design and\nstructure, delegating to Plan fiduciaries and the Plan actuary, and oversight and\nmonitoring the administration of the Plan, amongst other operational responsibilities.\nClause 14 repeals and replaces Schedule 2 of the principal Law to further secure the\nassets of the Fund by enabling wider investment diversification through best practice\nportfolio management and, pursuant to the advice of investment professionals, to meet\nrequired benefit payments to plan members and the expenses of the Plan.\nClause 15 provides a savings provision.\n\nPublic Service Pensions (Amendment) Bill, 2019\nArrangement of Clauses\n\nc\nIntroduced\nPage 5\n\nCAYMAN ISLANDS\n\nPUBLIC SERVICE PENSIONS (AMENDMENT)\nBILL, 2019\n\nArrangement of Clauses\nClause\nPage\n1.\nShort title ...................................................................................................................................7\n2.\nAmendment of section 3 of the Public Service Pensions Law (2017 Revision)-definitions ..........7\n3.\nAmendment of the principal Law-deletion of the word \u201cparticipant\u201d and substitution ...................9\n4.\nAmendment of section 5- Public Service Pensions Board ........................................................ 10\n5.\nAmendment of section 6- powers and duties of the Board ....................................................... 10\n6.\nAmendment of section 16- fund investments............................................................................ 10\n7.\nAmendment of section 25- pensions not to be assignable ........................................................ 11\n8.\nAmendment of section 26- non-resident non-Caymanians ....................................................... 12\n9.\nAmendment of section 35- disability retirement ........................................................................ 13\n10.\nAmendment of section 40- vesting ........................................................................................... 13\n11.\nAmendment of section 52- disability retirement ........................................................................ 13\n12.\nAmendment of section 56- vesting ........................................................................................... 13\n13.\nRepeal of Schedule 1 and substitution- constitution and procedure of the Board; duties of\nthe Managing Director ............................................................................................................. 14\n14.\nRepeal of Schedule 2 and substitution- approved investments ................................................ 17\n15.\nSavings.................................................................................................................................... 18\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 1\n\nc\nIntroduced\nPage 7\n\nCAYMAN ISLANDS\n\nPUBLIC SERVICE PENSIONS (AMENDMENT)\nBILL, 2019\n\nA BILL FOR A LAW TO AMEND THE PUBLIC SERVICE PENSIONS LAW (2017\nREVISION) TO CHANGE THE MANNER OF CALCULATING PENSIONS; TO PROVIDE\nFOR A LONGER PERIOD FOR CASH-OUT PAYMENTS; TO SECURE ASSETS OF\nTHE FUND BY ENABLING INVESTMENT DIVERSIFICATION; AND FOR INCIDENTAL\nAND CONNECTED PURPOSES\nENACTED by the Legislature of the Cayman Islands.\n1.\nShort title\n1.\nThis Law may be cited as the Public Service Pensions (Amendment) Law, 2019.\n2.\nAmendment of section 3 of the Public Service Pensions Law (2017\nRevision)-definitions\n2.\nThe Public Service Pensions Law (2017 Revision), in this Law referred to as \u201cthe\nprincipal Law\u201d, is amended in section 3 \u2014\n(a)\nby deleting the definition of \u201ccredited rate of return\u201d and substituting the\nfollowing definition \u2014\n\u201c \u201ccredited rate of return\u201d means \u2014\n(a) the rate of investment return to be credited to accounts on an\naccount adjustment date, as determined by the Administrator\n\nClause 2\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 8\nIntroduced\nc\n\non 13th April, 1999, and at the end of each calendar year up to\nsuch date as the Cabinet may for this purpose in writing\nappoint and \u2014\n(i)\nwhere on or after 14th April, 1999 an account adjustment\ndate is the last day of a calendar year the credited rate of\nreturn shall be the average rate of investment return on\nFund investments for that calendar year and the two\nimmediately preceding calendar years; and\n(ii) where an account adjustment date does not fall on the\nlast day of a calendar year, the credited rate of return\nshall be the credited rate of return that was applied on the\nprevious account adjustment date prorated for the period\nof the year up to such account adjustment date;\n(b) with respect to plan member\u2019s contributions made to the Fund\nunder the prior law credited to a plan member\u2019s contribution\naccount on the 14th April, 1999 under section 30(2), the\naverage rate of investment return on Fund investments for the\nperiod commencing on the date the Fund was established\nunder the prior law and ending on the 13th April, 1999, as\ndetermined by the Administrator; and\n(c)\nthe rate of investment return to be credited to accounts on\naccount adjustment date, as determined by the Administrator\nwith effect from the first calendar quarter following the 31st\nday of December, 2018 and at the end of each calendar\nquarter \u2014\n(i)\nwhere on or after the 31st day of December, 2018 an\naccount adjustment date is the last day of the calendar\nquarter, the credited rate of return shall be the average\nfor the twelve months immediately preceding that\ncalendar quarter; and\n(ii) where an account adjustment date does not fall on the\nlast day of a calendar quarter, the credited rate of return\nshall be the credited rate of return that was applied on the\nprevious account adjustment date prorated for the period\nof the calendar quarter up to such account adjustment\ndate;\u201d;\n(b) by deleting the definition of \u201cdesignated beneficiary\u201d and substituting the\nfollowing definition \u2014\n\u201c \u201cdesignated beneficiary\u201d means a person designated by the Plan\nmember under section 19 to receive benefits under section 43, 60,\n62, 63 or 65 or any other benefits not specified for payment to a\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 3\n\nc\nIntroduced\nPage 9\n\nplan member\u2019s spouse or children or an entity in the event of the\nplan member\u2019s death;\u201d;\n(c)\nby inserting in the appropriate alphabetical order the following\ndefinition \u2014\n\u201c \u201cdirector\u201d means a member of the Board;\u201d;\n(d) by deleting the definition of \u201cformer participant\u201d and substituting the\nfollowing definition \u2014\n\u201c \u201cformer plan member\u201d means a plan member who terminated\nemployment and remains in the Service or who ceased to accrue\nbenefits prior to being qualified for retirement under the Plan;\u201d;\n(e)\nby inserting in the appropriate alphabetical order the following\ndefinition \u2014\n\u201c \u201cInvestment Committee\u201d means the Committee established by\nthe Board pursuant to section 5(2C) and specified in Schedule 1;\u201d;\n(f)\nin the definition of \u201cmember\u201d by inserting after the word \u201cBoard\u201d\nthe\nwords \u201cor a committee or sub-committee of the Board\u201d;\n(g) by deleting the definition of \u201cparticipant\u201d;\n(h) by inserting in the appropriate alphabetical order the following\ndefinition \u2014\n\u201c \u201cplan member\u201d means an employee in Service, an employee on\nan approved leave of absence or an employee who has retired or\nresigned from Service on pensionable terms;\u201d;\n(i)\nby inserting in the appropriate alphabetical order the following\ndefinition \u2014\n\u201c \u201cpublicly traded company\u201d means a company whose stock is\ntraded on \u2014\n(a)\na stock exchange in the Islands; or\n(b) any other exchange recognized by internationally recognized\ncredit rating agencies on which securities are traded, if the\nprices at which the securities have been traded on such market\nare regularly published in a newspaper or business or financial\npublication of general or regular paid circulation;\u201d and\n(j)\nby repealing the definition of \u201ctraded publicly\u201d.\n3.\nAmendment of the principal Law-deletion of the word \u201cparticipant\u201d and\nsubstitution\n3.\nThe principal Law is amended by deleting the word \u201cparticipant\u201d wherever it\nappears in the Law and substituting the words \u201cplan member\u201d.\n\nClause 4\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 10\nIntroduced\nc\n\n4.\nAmendment of section 5- Public Service Pensions Board\n4.\nThe principal Law is amended in section 5 as follows \u2014\n(a)\nby inserting after subsection (2) the following subsection \u2014\n\u201c(2A)\nThe Board may \u2014\n(a)\nact by committee or sub-committee; and\n(b) delegate by instrument in writing any of its powers and duties\nto a committee or sub-committee and to any of their\nmembers.\u201d; and\n(b) in subsection (3) \u2014\n(i)\nby inserting after the word \u201cBoard\u201d the words \u201cor of any committee\nappointed by the Board\u201d; and\n(ii) by deleting the words \u201cPublic Service Pensions\u201d.\n5.\nAmendment of section 6- powers and duties of the Board\n5.\nThe principal Law is amended in section 6 as follows \u2014\n(a)\nby inserting after subsection (1A) the following subsection \u2014\n\u201c(1B) The Board shall be responsible for the oversight and monitoring of\nthe Administrator, the Investment Committee and any other\ncommittees or sub-committees appointed by the Board in\naccordance with section 5; and when exercising its fiduciary\nresponsibility the Board shall act in the best interests of the plan\nmembers and beneficiaries of the Fund.\u201d; and\n(b) in subsection (3), by deleting the words \u201cNo member or employee of the\nBoard\u201d and substituting the words \u201cNo director, member of a committee\nor sub-committee of the Board or employee of the Board\u201d.\n6.\nAmendment of section 16- fund investments\n6.\nThe principal Law is amended in section 16 as follows \u2014\n(a)\nby repealing subsection (1) and substituting the following subsection \u2014\n\u201c(1) The Fund shall be invested by the Board in a manner consistent\nwith \u2014\n(a)\nbest-practice portfolio management;\n(b) the Board\u2019s duty to avoid undue risk of loss or impairment\npursuant to subsection (3);\n(c)\nthe Board\u2019s duties of care, diligence and skill pursuant to\nsubsection (4); and\n(d) the investment policies and procedures formulated in\naccordance with subsection (5).\u201d;\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 7\n\nc\nIntroduced\nPage 11\n\n(b) by repealing subsection (3) and substituting the following subsection \u2014\n\u201c(3) The Board shall invest the Fund in such a manner to ensure that\nthere is no undue risk of loss or impairment to the Fund, including\nby ensuring diversification of the investments of the Fund, and\npursuant to the advice of the Investment Committee and any\ninvestment\nmanagers\nappointed\nby\nthe\nBoard\nunder\nsubsection (2).\u201d; and\n(c)\nby inserting after subsection (4) the following subsection \u2014\n\u201c(5) The Board shall establish, maintain and adhere to investment\npolicies and procedures that are consistent with its duties under\nsubsections (1), (3) and (4) and that covers, among any other\nrelevant issues \u2014\n(a)\nthe classes of investments in which the Fund is to be invested\nand the selection criteria for investments within those classes;\n(b) the determination of benchmarks or standards against which\nthe performance of the Fund as a whole, classes of\ninvestments and individual investments will be assessed;\n(c)\nstandards for reporting the investment performance of the\nFund;\n(d) the balance between risk and return in the overall Fund\nportfolio;\n(e)\nthe fund management structure;\n(f)\nthe use of options, futures and other derivative financial\ninstruments;\n(g) the investment in private equity funds, hedge funds and funds\nthat invest in infrastructure;\n(h) the management of credit, liquidity, operational, currency,\nmarket and other financial risks;\n(i)\nthe retention, exercise or delegation of voting rights acquired\nthrough investments;\n(j)\nthe method of, and basis for, valuation of investments that are\nnot regularly traded at a public exchange; and\n(k) the prohibition, restriction, constraint or limit on any\ninvestment.\u201d.\n7.\nAmendment of section 25- pensions not to be assignable\n7.\nThe principal Law is amended in section 25 \u2014\n(a)\nby renumbering the existing section as section 25(1); and\n\nClause 8\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 12\nIntroduced\nc\n\n(b) by inserting after subsection (1) as renumbered the following\nsubsections \u2014\n\u201c(2) A pension provided under this Law shall not be transferable or\nassignable by the Administrator, except for the purpose of\nsatisfying \u2014\n(a)\na debt due to the Government, a statutory authority or a\nGovernment company, where there is no dispute as to the debt\nor the amount of any deduction from a pension to satisfy that\ndebt; or\n(b) an order of a court for the payment of periodical sums of\nmoney towards the maintenance of the spouse, former spouse\nor minor child of the Plan member to whom the pension has\nbeen granted.\u201d; and\n(3) Where there is a dispute, a party to the dispute may submit the\ndispute to binding arbitration under the Arbitration Law 2012.\u201d.\n8.\nAmendment of section 26- non-resident non-Caymanians\n8.\nThe principal Law is amended by repealing section 26(1) and substituting the\nfollowing subsections \u2014\n\u201c(1) Notwithstanding any provision to the contrary, a retired or deferred\nvested plan member who became a plan member before the date of\nthe commencement of this amending Law, who \u2014\n(a)\nis not the holder of Caymanian status as defined in section 26\nof the Immigration (Transition) Law, 2018; and\n(b) ceases to reside in the Islands,\nmay, upon such cessation in residency, elect to receive the present\nvalue of the remainder of his accrued benefit (actuarially adjusted to\ntake into account any benefits already paid to the plan member\npursuant to any of the other forms of benefit available to the plan\nmember or due to any prior distribution) in a single lump sum cash\npayment payable within one month after the plan member so ceases\nto be resident in the Islands.\n(1A) For the purposes of subsection (1)(b), a person shall be considered\nto have ceased to be resident in the Islands when that person no\nlonger has a legal right to reside in the Islands and has been absent\nfrom the Islands for a period of not less than two months; and, in\ncalculating a period of absence, no account shall be taken of a\nperiod of stay in the Islands, as a visitor or transit passenger, for a\ncontinuous period of three weeks or less.\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 9\n\nc\nIntroduced\nPage 13\n\n(1B) Notwithstanding any provision to the contrary, a retired or deferred\nvested plan member who became a plan member after the date of\nthe commencement of this amending Law, who \u2014\n(a)\nis not the holder of Caymanian status as defined in section 26\nof the Immigration (Transition) Law, 2018; and\n(b) ceases to reside in the Islands,\nmay, upon such cessation in residency, elect to receive the present\nvalue of the remainder of his accrued benefit (actuarially adjusted to\ntake into account any benefits already paid to the plan member\npursuant to any of the other forms of benefit available to the plan\nmember or due to any prior distribution) in a single lump sum cash\npayment payable within one month after the plan member so ceases\nto be resident in the Islands.\n(1C) For the purposes of subsection (1B)(b), a person shall be considered\nto have ceased to be resident in the Islands when the person no\nlonger has a legal right to reside in the Islands and has been absent\nfrom the Islands for a period of two years or more; and, in\ncalculating a period of absence, no account shall be taken of a\nperiod of stay in the Islands, as a visitor or transit passenger, for a\ncontinuous period of three weeks or less.\n(1D) The provisions of subsections (1) to (1C) shall not apply until 1st\nJanuary 2020 and the provisions of the principal Law which are in\nforce immediately prior to the date of the commencement this\namending Law shall continue in force until such commencement.\u201d.\n9.\nAmendment of section 35- disability retirement\n9.\nThe principal Law is amended in section 35(1) by inserting after the word \u201cactive\u201d\nthe words \u201cor a deferred vested\u201d.\n10.\nAmendment of section 40- vesting\n10. The principal Law is amended in section 40 by deleting the full stop and\nsubstituting the words \u201c, except that where the pension or a part of the pension is\ntransferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d.\n11.\nAmendment of section 52- disability retirement\n11. The principal Law is amended in section 52(1) by inserting after the word \u201cactive\u201d\nthe words \u201cor a deferred vested\u201d.\n12.\nAmendment of section 56- vesting\n12. The principal Law is amended in section 56 by deleting the full stop and\nsubstituting the words \u201c, except that where the pension or a part of the pension is\ntransferred or assigned under section 25(1)(a)(i) the accrued benefit shall not vest.\u201d.\n\nClause 13\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 14\nIntroduced\nc\n\n13.\nRepeal of Schedule 1 and substitution- constitution and procedure of the\nBoard; duties of the Managing Director\n13. The principal Law is amended by repealing Schedule 1 and substituting the\nfollowing Schedule \u2014\n\u201cSchedule 1\n(Section 5)\nPart 1 - Constitution and procedure of the Board and of any\ncommittee appointed by the Board\n1.\n(1) Subject to sub-paragraph (2), the Board shall consist of the\nfollowing directors \u2014\n(a)\nthe Financial Secretary (ex officio);\n(b) the Chief Officer, Portfolio of the Civil Service (ex officio);\n(c)\nthe President of the Cayman Islands Civil Service Association\n(CICSA) (ex officio) or his nominee;\n(d) subject to paragraph 2, five directors appointed by the\nGovernor who are neither employees in the Public Service nor\nOther Public Service; and\n(e)\nthe Managing Director (ex officio and non-voting).\n(2) The Board, after being constituted under sub-paragraph (1) may\nappoint as a member of the Board an active defined contribution\nplan member under the Plan who has been nominated by active\nmembers.\n2.\nIn appointing the directors under paragraph 1(1)(d) the Governor shall\nensure that \u2014\n(a)\none of the directors has substantial professional investment\nexperience;\n(b) one of the directors is an attorney-at-law with substantial\nfiduciary expertise; and\n(c)\none of the directors is a retired plan member under the Plan.\n3.\nThe chairman shall be appointed by the Governor from among the five\ndirectors appointed by the Governor and, in the absence of the chairman,\na temporary chairman may be approved by the directors in attendance.\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 13\n\nc\nIntroduced\nPage 15\n\n4.\nThe Managing Director may designate an officer of the staff or other\nstaff of another entity to act as secretary to the Board, the Investment\nCommittee and any other committees or sub-committees established\nunder this Law.\n5.\nA director who is appointed by the Governor or by the Board shall hold\noffice at the Governor\u2019s or the Board\u2019s pleasure respectively, for a four\nyear term but, at the discretion of the Governor or the Board as the case\nmaybe, may be appointed for two additional consecutive terms of two\nyears.\n6.\nA director who is appointed by the Governor or by the Board may resign\nhis office at any time in writing addressed to the Governor or the Board\nand shall cease to be a director from the date of the receipt of such\nresignation by the Governor or by the Board.\n7.\nWhere a director resigns under paragraph 6 the Governor shall appoint or\nthe Board select a new director for the remaining term of the former\ndirector.\n8.\nThe Board shall meet at least once in every three calendar months.\n9.\nA director shall be deemed to be present at a meeting of the Board, the\nInvestment Committee or of any other committee or sub-committee of\nthe Board if the member physically attends or participates in the meeting\nby conference telephone or by some other conference facility.\n10. The Board\u2019s proceedings shall be governed by standing orders prepared\nby the Board and such standing orders shall be kept under review, and\nmay be amended, by the Board.\n11. There is established a committee to be known as the Investment\nCommittee to whom the Board may delegate its authority with respect to\nthe investment of Fund assets.\n12. (1) The Investment Committee shall be comprised of the following\nmembers \u2014\n(a)\nthe Managing Director;\n(b) a plan member representative who is a director;\n(c)\nthe\nmember\nwith\nsubstantial\nprofessional\ninvestment\nexperience from the Board appointed under paragraph 1(d);\nand\n(d) not more than two other individuals with substantial\nprofessional investment experience, who may be a current\ndirector of the Board (excluding the Chairman).\n(2) In addition to delegating any of its powers set out in the Law with\nrespect to the investment of the Fund, the Board may delegate to the\n\nClause 13\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 16\nIntroduced\nc\n\nInvestment Committee the authority to set asset allocation ranges,\nevaluate\nand\nmonitor\ninvestment\nperformance\nand\nmake\nrecommendations to the Board in respect of all other areas related to\nthe Fund\u2019s investment strategy and programme.\n13. The Governor or the Board, respectively shall terminate the appointment\nof any director so appointed by the Governor or the Board who, \u2014\n(a)\nresigns his office;\n(b) becomes of unsound mind or incapable of carrying out his\nduties;\n(c)\nbecomes bankrupt, suspends payment to or compounds with\nhis creditors;\n(d) is convicted in the Islands or any other jurisdiction of an\noffence involving dishonesty, fraud or any indictable offence;\n(e)\ncommits serious misconduct in relation to his duties; or\n(f)\nis absent without leave for three or more consecutive\nmeetings.\nPart 2 - Duties of the Managing Director\n\nThe Managing Director is entrusted with the day to day operations of the\nPlan and any other plan administered by the Board and has the following\nduties \u2014\n(a)\nproviding instructions to any investment managers appointed\nby the Board under section 16(2);\n(b) managing the cash flow of the Fund;\n(c)\ndelegating tasks relating to the overall management of the\nFund to selected employees and or selected agents retained by\nthe Board, including the actuaries, investment advisor and\nother  fiduciaries of the Plan;\n(d) assisting auditors;\n(e)\ndeveloping funding policies;\n(f)\ninterpreting the Plan or any other Plan administered by the\nBoard;\n(g) execution of adopted strategies including plan design and\nstructure;\n(h) ensuring an education programme is in place for the Board its\ncommittees and sub-committees;\n(i)\nthe preparation of reports of the Board required under this\nLaw;\n\nPublic Service Pensions (Amendment) Bill, 2019\nClause 14\n\nc\nIntroduced\nPage 17\n\n(j)\nhiring staff and providing oversight and monitoring of the\nadministration\nof\nthe\nPlan\namong\nother\noperational\nresponsibilities; and\n(k) reporting to the Board on activities, at least annually, and\nperforming such other duties as the Board, in its discretion,\nmay assign.\u201d.\n14.\nRepeal of Schedule 2 and substitution- approved investments\n14. The principal Law is amended by repealing Schedule 2 and substituting the\nfollowing Schedule \u2014\n\u201cSchedule 2\n(Section 16)\nApproved Investments\n1.\nThis Schedule of approved investments is intended to provide guidance\nto the Board with respect to Fund investments and is not intended to be\nrestrictive to the specific asset classes and sub-classes designated below.\n2.\nThe Fund\u2019s investment policy is designed to be a fully invested portfolio,\nreflecting the broad spectrum of long-term risks and opportunities in the\nglobal economy and financial markets (without taking undue risk of loss\nor impairment), taking into account the actuarial assumptions and\nfunding requirements of the Plan and maintaining adequate liquidity to\nmeet required benefit payments to plan members and expenses of the\nPlan.\n3.\nSubject to paragraph 4, the list of approved investments in paragraph 5\nmay be held in segregated arrangements or through holding units in an\nopen-end or closed-end mutual, collective or pooled fund, a private\nequity fund, a hedge fund, or a fund that invests in infrastructure.\n4.\nFunds specified under paragraph 3 must be listed on a recognized\ninternational stock exchange, other than private equity funds, hedge\nfunds or funds that invest in infrastructure.\n5.\nThe approved investments, by asset class, are as follows \u2014\n(a)\nFixed Income Portfolio \u2014\n(i)\ntreasury bills;\n(ii) bonds and notes, including domestic and foreign\ngovernment bonds, commercial paper and investment\ngrade corporate bonds;\n\nClause 15\nPublic Service Pensions (Amendment) Bill, 2019\n\nPage 18\nIntroduced\nc\n\n(iii) cash and cash equivalents; and\n(iv) guaranteed insurance company contracts;\n(b) Equity Portfolio\u2014\n(i)\nlarge cap value and growth of stocks of publicly traded\ncompanies;\n(ii) small and mid-cap stocks of publicly traded companies;\n(iii) convertible securities of publicly traded companies;\n(iv) emerging markets stocks; and\n(v) private equity funds;\n(c)\nAlternative Investment Portfolio \u2014\n(i)\nreal estate, including real estate investment trusts;\n(ii) mortgages, asset-backed securities and bank loans;\n(iii) energy and natural resources;\n(iv) derivative investment contracts which provide for\nportfolio protection, such as currency hedging, warrants,\noptions and future contracts;\n(v) absolute return funds;\n(vi) hedge funds which are pools of capital from accredited\ninvestors or institutions which invest in a variety of\nassets using risk management techniques; and\n(vii) funds that invest in infrastructure.\u201d.\n15.\nSavings\n15. Where, prior to the date of the commencement of this amending Law, an application\nwas made under the principal Law and the application has not been determined at\nthe date of commencement of this amending Law that application shall be\ndetermined as if this amending Law had not come into force.\n2.\n\nPassed by the Legislative Assembly the       day of                         , 2019.\n\nSpeaker\n\nClerk of the Legislative Assembly","akn_extracted_at":"2026-06-22 15:42:09.756342+00","cms_id":"2019-0023","law_type":"bill","year":"2019","number":"23","title":"Public Service Pensions (Amendment) Law, 2019 (Law 23 of 2019)","status":"bill"},"provenance":{"files":[{"file_id":"6993","expr_id":"2194","kind":"akn_xml","filename":"2019-0023.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0023\/2019-0023.akn.xml","content_md5":"291a4934786a153f786318bf72dd2e1a","byte_size":"32590","http_last_modified":null,"fetched_at":"2026-06-22 15:42:10.002143+00"},{"file_id":"4387","expr_id":"2194","kind":"pristine_pdf","filename":"2019-0023.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2019\/2019-0023\/2019-0023.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/BILLS\/2019\/2019-0023\/2019-0023.pdf","content_md5":"f082a1e96043eab16d38b3dd54dd6466","byte_size":"580479","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.28136+00"},{"file_id":"4388","expr_id":"2194","kind":"working_pdf","filename":"2019-0023.pdf","source_url":"\/cms\/images\/LEGISLATION\/BILLS\/2019\/2019-0023\/2019-0023.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/BILLS\/2019\/2019-0023\/2019-0023.pdf","content_md5":"f082a1e96043eab16d38b3dd54dd6466","byte_size":"580479","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.28136+00"}],"paragraph_count":7,"latest_history":null},"quality":{"expr_id":"2194","doc_id":"2194","quality_state":"needs_review","quality_score":"76","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture}","finding_severity_counts":"{\"medium\": 2}","finding_summary":"repeated line furniture detected: cayman islands x3; introduced x16; public service pensions amendment bill 2019 x15; duplicate-line ratio is 14.04%","assessed_at":"2026-06-22 15:29:46.628078+00","updated_at":"2026-06-22 15:29:46.628078+00"}}