Secondary pensions scheme now set for launch in 2023

THE introduction of a stalled secondary pension scheme is now being planned for January 2023.

Employment & Social Security president Deputy Peter Roffey. (Picture by Sophie Rabey, 29631837)
Employment & Social Security president Deputy Peter Roffey. (Picture by Sophie Rabey, 29631837)

The Guernsey Press revealed on Monday that the States-approved scheme had been delayed from an original start date of January 2022 due to the impact of Brexit and the pandemic. Employment & Social Security has set the new target date to give employers and pension providers an adequate lead-in time to prepare for the incoming secondary pensions legislation, which is currently being drafted.

‘We know that employers need plenty of time to prepare for this change, and although we are disappointed that the date has slipped by 12 months, we think this is the right thing to do and hope that employers and pension providers will understand our reasoning for this postponement,’ said ESS president Peter Roffey.

The committee said significant engagement will take place with employers and pension providers in the lead-up to the launch of secondary pensions to make sure that businesses were aware of their obligations.

Under this legislation, employers would be required to contribute at least minimum levels into either a qualifying pension scheme or into the new secondary pension scheme following automatic enrolment of their employees.

The main aim of the secondary pension scheme, which will be known as Your Island Pension, is to support more working age people to save for their retirement. This is so that they can add some private pension provision to their States pension – formerly the old age pension – said ESS.

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