States chooses Sovereign as preferred secondary pension scheme provider
A LOCAL pension provider has been chosen as the preferred bidder to run the island’s new secondary pension scheme.
Sovereign Pension Services (CI) will work with Ravenscroft as investment manager on the project, built to encourage pension savings for people who currently have no workplace or private pension provision.
The States originally intended the scheme to start this year and had appointed a UK pensions management business to run it.
But Smart Pension pulled out late last year, leaving Employment & Social Security to go back to the local market to find an operator.
ESS will be liaising with Sovereign this month and then confirming the commencement date, which is currently set to be January 2023.
‘It was encouraging to see local pension providers showing such interest in partnering with the States to deliver Your Island Pension and we’re really pleased to have selected Sovereign as our preferred bidder and look forward to working with them,’ said committee president Deputy Peter Roffey.
Under the secondary pension legislation, employers will be required to contribute at least minimum levels into either a qualifying pension scheme or into the new secondary pension scheme, called Your Island Pension, following automatic enrolment of their employees.
The auto-enrolment obligations for employers will be phased-in according to the number of employees, starting with larger employers.
The main aim of the secondary pension scheme is to support more working age people to be able to save for their retirement, thereby enabling them to enjoy a more comfortable retirement and controlling welfare expenditure in the longer-term.
The States approved the detailed proposals in 2020, however, the committee will return to the States this year to seek approval of the revised scheme and to seek approval for the legislation that will underpin it.
Sovereign Pension Services (CI) managing director Sean Gillease said: ‘We look forward to working with the States of Guernsey and the wider public to deliver a meaningful benefit to employers and employees in the Bailiwick.’
