The States of 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.
Secondary Pensions will be similar to ‘auto-enrolment’ in the UK, introduced in 2012, which made it compulsory for UK employers to enrol their eligible workers into a pension scheme.
Secondary Pensions is set to take effect from January 2022 for larger employers and will be rolled out on a phased basis with the smallest employers being required to enrol their employees by April 2024.
Minimum contribution levels have been set by the States and these start from 1% employer and 1% employee contributions in year one but will increase to a total of 10% (3.5% employer and 6.5% employee) over a period of 8 years.
The States will provide employers with access to a default secondary pension, the Your Island Pension, operated by Smart Pensions in the UK, however employers can choose a ‘qualifying scheme’ provided by a suitably licensed and regulated local pensions provider such as Sovereign.
Sovereign Trust (Channel Islands) Limited and Sovereign Trust (Guernsey) Limited are regulated by the Guernsey Financial Services Commission and licensed in respect of the formation, management and administration of pension schemes.
If you would like to hear more about the cost effective options that Sovereign can provide for Guernsey based employers, which will be managed by a wholly Guernsey based administration team, please complete and submit the below form:
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Sovereign Trust (Channel Islands) Limited and Sovereign Trust (Guernsey) Limited are licensed under the Regulation of Fiduciaries, Administration Business and Company Directors etc (Bailiwick of Guernsey) Law, 2000 and regulated by the Guernsey Financial Services Commission. Their registered office is at Suite B, St Peter Port House, Sausmarez Street, St Peter Port, Guernsey, Channel Islands, GY1 2PU, registration numbers 51016 and 51015.