Sovereign Pension Services has been working hard in preparation for the launch of ‘Your Island Pension’ (YIP), Guernsey’ new Secondary Pension scheme. Sovereign was selected by the Guernsey government to provide its new secondary pensions scheme following a tender process with local pension providers.
The Secondary Pensions regime is Guernsey’s equivalent of the UK’s auto-enrolment regime. The main aim is to support more working age people in Guernsey to save for their retirement, thereby enabling them to enjoy a more comfortable retirement and controlling welfare expenditure in the longer-term.
Under the secondary pension legislation, Guernsey employers will be required to contribute at least minimum levels into either the new secondary pension scheme, called YIP, or into a qualifying alternative scheme, following automatic enrolment of their employees.
It is to be implemented on a phased basis over a 15-month period, beginning with the largest employers (those with 26 or more employees). The minimum level of contributions will initially be 2% of earnings, with at least 1% paid by the employer. This will gradually rise to at least 10% of earnings with at least 3.5% paid by the employer after eight years.
The States of Guernsey recently confirmed the formal date for Secondary Pensions introduction will be 1 July 2024, but Sovereign is making YIP available from 1 January 2024 for anyone looking to join a scheme early.
“Secondary Pensions will transform the way people save for their retirement in Guernsey,” said Sean Gillease, Managing Director of Sovereign Pension Services (CI) Limited. “Sovereign is delighted to be playing such a central role in this transformation, delivering a solution that will be accessible for all Guernsey businesses – with ease of administration, online services and low cost being key to the service.”
For more information on YIP please contact Sean Gillease at sgillease@sovereigngroup.com or Jo Smeed at jsmeed@sovereigngroup.com
