Occupational Pension Schemes to meet the obligations of Gibraltar employers and the expectations of Gibraltar employees

The Gibraltar Private Sector Pensions Act 2019 was introduced to ensure that every member of the Gibraltar community, including those working in the private sector, is financially protected in their later years.

Like the ‘auto enrolment’ pensions regime in the UK, the Act makes it compulsory for all employers in Gibraltar to provide access for all eligible employees to a pension scheme, in addition to the existing State pension. Should an employee choose to join the pension scheme, the Act also makes it compulsory for both the employer and employee to contribute a minimum amount each week or month (depending on how the employee is paid) to the employee’s pension fund.

Gibraltar employees eligible for ‘auto enrolment’ must be over the age of 15, have worked for an employer for one year or more and have gross earnings from that employment of £10,000 or more per year.

Implementation of ‘auto enrolment’ regime was deliberately phased to give smaller employers more time to adjust to the new requirements. The first applicable date was 1 July 2021, when ‘Enterprise’ employers (those with over 250 employees) were required to provide a pension plan to any employee who requests it. The process will conclude on 1 July 2027, when ‘Micro’ employers (those with 14 or fewer employees) will be brought into scope.

The Gibraltar Financial Services Commission (GFSC) is responsible for establishing and maintaining a ‘Register of Employers Maintaining Pension Plans’. The administrator of a Gibraltar firm’s pension plan is required to inform the GFSC of the choices made by all eligible employees of that firm.

To assist Gibraltar employers of any size to meet their new ‘auto enrolment’ pension obligations, Sovereign Pension Services (Gibraltar) can design and set up Occupational Pension Schemes that will satisfy all the Gibraltar ‘auto enrolment’ criteria. We also have the capacity and expertise to administer these pension plans on behalf of Gibraltar employers, such that clients can be assured of the maximum business benefit and the minimum business disruption.

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