Occupational Pension Schemes to meet the legal requirements of Guernsey employers and the expectations of Guernsey employees

Guernsey has passed proposals that will make it mandatory for all Guernsey-based employers to enrol their eligible employees into a qualifying employer sponsored pension scheme under what is being called the ‘Secondary Pensions’ regime. It will also be compulsory for both the employer and employee to contribute a regular minimum amount to the employee’s pension fund.

Like ‘auto-enrolment’ in the UK, this will apply to every private company in Guernsey that employs an eligible worker. The Guernsey government will provide employers with access to a default secondary pension, the Your Island Pension (YIP), but employers can choose a ‘qualifying scheme’ provided by a suitably licensed and regulated local pensions provider such as Sovereign.

The Secondary Pensions’ regime is set to take effect from January 2023 for the largest employers and will be rolled out on a phased basis. Sovereign Pension Services (CI) Limited and Sovereign Trust (Channel Islands) Limited are regulated by the Guernsey Financial Services Commission and licensed in respect of the formation, management and administration of pension schemes.

To assist Guernsey employers of any size to meet their new obligations, Sovereign can design and set up Occupational Pension Schemes (also known as ‘workplace’ or ‘corporate’ pension schemes) that will satisfy all the Guernsey ‘secondary pension’ criteria and serve as a powerful employee retention tool.

We also have the capacity and expertise to administer these pension plans on behalf of Guernsey employers, such that clients can be assured of the maximum business benefit and the minimum business disruption.

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