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Secondary pensions firm pulls out - but new scheme still on for Jan 2023

Secondary pensions firm pulls out - but new scheme still on for Jan 2023

Thursday 25 November 2021

Secondary pensions firm pulls out - but new scheme still on for Jan 2023


Politicians developing a secondary pensions scheme - known as YIP - are "still optimistic" that it will be in place by January 2023 despite announcing the withdrawal of the company appointed to run the scheme.

The States' committee leading the work - Employment & Social Security - says it is not considering running the compulsory scheme itself. Instead it is now looking for locally-based providers to take over from the UK company which has withdrawn, Smart Pension.

Deputy Peter Roffey, President of the Committee for Employment & Social Security, said there was now "an opportunity for a locally-based pension provider to play a crucial role in the introduction of secondary pensions in Guernsey".

The secondary pensions scheme has been developed across three States' terms. The States approved the concept in 2016 and more detailed proposals in 2019.

The scheme will require employees and employers who do not currently contribute to a private occupational pension scheme to put more money aside for retirement. It is estimated that at present approximately 60% of the island's working-age population - around 25,000 people - are not contributing to a private pension. 

Committee for Employment & Social Security

Pictured: The Committee for Employment & Social Security is optimistic that the long-awaited secondary pensions scheme will finally be in place in January 2023 and that it will be operated by a locally-based provider.

The Committee said it was "still targeting an implementation date of January 2023 but recognises that this may be challenging". When asked by Express whether the chances of getting the scheme up and running for January 2023 were now no better than 50/50, the Committee said: "No. Given progress that has been made in other areas and the intended timeline for the procurement process, the Committee is still optimistic that 1 January 2023 will be achievable."

Local pensions firm BWCI welcomed the latest developments.

"BWCI is delighted that [Deputy Roffey] has confirmed that the arrangements for secondary pensions in Guernsey are still on course to be implemented from 1 January 2023," said John Martin, Director of BWCI.

"This is excellent news for the retirement provision of local residents and is set to be a very positive development for pensions in Guernsey. We also support the proposed streamlining of the governance arrangements, thus reducing the burden both on pension members and the Guernsey taxpayer.

Stephen Ainsworth,  Senior Partner at BWCI, said: "It is encouraging that the Committee has recognised the strength and depth of the pension industry in Guernsey and has made efforts to enable local providers to bring their expertise in world-leading solutions to the local market place. As one of the largest and longest-established pension trustees and administrators in Guernsey, we are keen to play a major part in these developments."

 

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