Guernsey’s Committee for Employment & Social Security has announced that it has selected Sovereign Pension Services (CI) Limited as its preferred bidder to provide the new secondary pensions scheme following a tender process with local pension providers.
Sovereign will operate the scheme in conjunction with Ravenscroft, which will provide the investment management services.
The Committee is very conscious that employers and payroll providers need sufficient time to prepare, and it will be liaising with Sovereign this month and then confirming the commencement date, which is currently set to be January 2023.
Under 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 (YIP), 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 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 for your Island Pension 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.
Deputy Peter Roffey, President of the Committee for Employment & Social Security, said: “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.”
Sean Gillease (pictured), Managing Director of Sovereign Pension Services (CI) Limited, said: “We are delighted to have been selected as the YIP scheme provider. 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.
“Sovereign has worked with clients across various industries (not just financial services) and with businesses of all sizes; this experience should position us well to deliver this unique solution.”