‘Secondary Pensions’ Occupational Pension Schemes

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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.

Why Choose Sovereign

Local Expertise Matters

When it comes to managing workplace pension schemes, local knowledge and a deep understanding of Island life is vital. Our Guernsey retirement experts understand the specific challenges you face.

Simplicity

We understand that you are busy running a business and, as a partner, we pride ourselves on keeping things simple. Whether you’re looking to upgrade an existing occupational pension scheme or starting a new scheme from scratch, our experienced team will assist you to select a scheme that meets the requirements under the ‘auto-enrolment’ regime and that matches the size of your operations. We will then deliver that scheme as swiftly and efficiently as possible.

Affordable

Our occupational pension schemes can be tailored to your budget. Providing employees with better benefits generally assists in employee retention and saves on the costs of replacing an employee. Our aim is to minimise the cost and the administrative burden, while helping you to recruit and retain good people.

Easy to administer

Our on-line control centre puts you in instant control of all aspects of your plan and provides members with a clear and concise overview and the freedom to engage directly with their account within a secure environment. This will ensure that they appreciate their pensions and give them confidence in the future.

Scalability

Our occupational pension schemes can easily expand as your business grows. We have developed a model that makes compliance with the Secondary Pensions’ regime scalable and affordable for employers and their employees with minimum cost and disruption.

Security

Sovereign offers trust-based occupational pension scheme solutions in which the assets of the scheme are held in trust for the beneficiaries (the employees). This ensures the legal separation of the plan’s assets from those of the sponsoring employer, which provides an additional layer of comfort to employees and protects the plan from any party seeking to lay claim to the assets of the business.

Investment

Investments options are at the heart of all good savings solutions. We provide a range of funds from leading fund houses across different risk appetites. This is in addition to placing sustainability at the heart of our investment ethos – allowing employees to balance growth and ethics simultaneously.

Employee engagement

Mandatory access to workplace pensions has increased the need for effective, proactive engagement with scheme members. We cannot expect everyone to be a financial expert. Our ‘Knowledge Hub’ empowers your staff to get to grips with this complex subject and to understand their rights and responsibilities.

Account management

Complying with Guernsey’s ‘Secondary Pensions’ regime is not just about pensions. It also involves business planning, the creation and integration of new processes, and the engagement of both the employee and employer. Sovereign has established itself as a market leader in pensions’ provision through substantial investment in our staff, systems and infrastructure. As a local provider, we will always be on hand to assist you and your employees in person.

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