BWCI is encouraging employers to get ready for the implementation of secondary pensions after the States approved subordinate legislation and issued supporting Statements of Practice.
This means that the definitive aspects and practical implementation of these new requirements have been confirmed in advance of the launch date of 1 July 2024 which will result in the biggest transformation to retirement savings the island has ever seen.
This means that Employers will be legally required to offer a workplace pension to their designated Guernsey, Alderney, and Herm employees.
There will be a lead-in period for the requirements, which will start with larger employers. Medium-sized and smaller employers will be phased in later.
Stephen Ainsworth (pictured), the BWCI Senior Partner said: “This is welcome news to encourage additional retirement savings and marks the culmination of activity over the last decade. Pension planning is for the long term, and the more employees can be encouraged to save for their retirement now rather than later, the better placed they will be to have a financially secure retirement.”
Initially, those included in secondary pensions will contribute a minimum of 2% of their earnings, of which at least 1% must come from the Employer.
Eventually, over the course of nine years, the overall minimum contribution will increase fivefold. Employees will then contribute 6.5% of their earnings, and employers will pay in a minimum of 3.5%.
