Early Take Up For Secondary Pension

Thursday, 18 January 2024 07:00

30 Guernsey businesses have enrolled, or are in the process of enrolling, into the new secondary pension scheme.

YIP, or Your Island Pension, comes into effect in July 2024.

It's based on a similar UK scheme, designed to provide a savings plan for the estimated 60% of Guernsey and Alderney workers who don't have a pension.

YIP is run by the Sovereign Group in Guernsey. MD Sean Gillease says it opened to employers on 1 January, and he's pleased with the early take up:

"Upwards of 30 businesses as we currently stand, have either formally joined the scheme and completed the necessary documentation and are actually in, officially, or are at the stage of completing the application document."

He says early take up makes it easier to manage, as every business will need to enroll before July 2024:

"A good number of employers will take advantage of that opportunity to get in ahead of the legal obligation to do so. That obviously gives us some more manageable flows."

A secondary pension was first debated by the States of Guernsey in 2016. Its introduction was delayed following a debate early last year. Although anyone can opt out, doing so will mean they miss out on the contributions made by their employer. Sean says every employee will initially be enrolled:

"Ultimately, this isn't an obligation on individuals, it's an obligation on employers. So, your employer, whether or not you have a personal pension or otherwise, is going to be obliged to set up a pension, potentially, or at the very least be contributing into a pension."