The Commission today launches a twelve week consultation on suggestions for revising the Retirement Annuity Trust Scheme Rules (RATS rules).
The principal objectives of the suggestions contained in the consultation paper are to explore whether we could reduce the cost of pension provision for islanders as well as creating opportunities for them to manage their own pension investment.
Currently, other than employee contributions to an occupational pension scheme, retirement annuity schemes and retirement annuity trust schemes offer the only means by which islanders can make tax efficient savings to fund their retirement. However, such schemes can be expensive to run and offer little flexibility to islanders wanting to make their own investment decisions over their pension fund.
The Commission has therefore decided to consult on potential changes that could be made to the RATS rules in order to reduce the costs and open up opportunities for the development of self- invest pensions without any reduction in the protection available to a member.
The Commission is encouraging members of the public and pension providers to give their responses to the questions set out in the consultation paper which is available on the Commission’s website. Responses to the questionnaire can be emailed to firstname.lastname@example.org. After the end of the consultation period a working group of pension practitioners and Commission staff will be set up to consider the principal themes and proposals emerging from the consultation.
Director General of the Commission, William Mason, said “I very much hope that Guernsey consumers will welcome the Commission's efforts in this area to simplify regulation and improve the value for money of pensions. I would encourage as many people as possible to respond to the consultation rather than regarding it as merely a technical consultation for industry experts.”