It was facilitated by the Committee for Employment & Social Security, who went out to market to seek bids from firms who could provide the pension service. Your Island Pension (YIP) was launched to make sure local employers could find a service they could afford.

In the original ESS policy letter it was stated: "...many employers of relatively low-earning employees, may well struggle at present to find a pension scheme to meet their obligations at an appropriate cost. The establishment of YIP will ensure that there is an appropriate savings vehicle available for everyone to use."

The Committee for Employment & Social Security has sought to remind employers that after 1 July 2024 they’ll be required to provide a secondary pension scheme to their employees. It only affects employers of 26 or more people initially, but the following 15 months will see the requirement roll over to smaller employers too. 

The Committee has also revised the date for larger employers, as it was originally the 1 January 2024. 

The President of ESS, Deputy Peter Roffey, said: “Secondary pensions are of paramount importance to individuals and to the future of the Island. Our population demographic is changing, with people living longer on average.  

“By encouraging working age people to save more for their retirement, we aim to avoid the prospect of a major problem with pensioner poverty whilst also maintaining a sustainable welfare budget in the long-term.” 

It is estimated that “approximately 65% of the employed working age population” of Guernsey and Alderney are not saving for retirement.The Committee argues that getting people into pension schemes will reduce the burden on the tax paying population in the future. 

Employers don’t have to use YIP, they can also sign up their staff to alternative qualifying schemes. More details about YIP will be announced soon and it’ll be available to employers a year before the revised date. 

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States back secondary pensions (at the second attempt)