Gibraltar legislates for private sector workplace pensions

In April, the Government of Gibraltar introduced a Bill for Pensions in the Private Sector, which will ensure that private sector workers are entitled to have a choice, by law, on whether they wish to make a contribution to a pension plan. The Bill was passed in to law in July 2019 (although we are still waiting on an effective date for it to be applicable). If an employee does choose to participate in a pension plan, the law will require the employer to contribute towards that employee’s pension plan.


Feature by Gerry Kelly
Chairman of the Gibraltar Association of Pension Fund Administrators (GAPFA), Group CEO of the Sovereign Group

The Private Sector Pensions Act is designed to remedy the discrepancy that exists between private sector workers and public sector workers in respect of pension provision, and will apply to every private company, including unincorporated bodies and individuals registered in Gibraltar that employ an eligible worker.

The legislation follows the introduction of workplace pensions in the UK in 2012. It was widely anticipated that Gibraltar would follow suit and the Private Sector Pensions Act provides for broadly similar rules. The main difference is that pension entitlement in Gibraltar starts from age 15, rather than age 22 in the UK.

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