Thousands access workplace pension scheme as they plan for their future

Wednesday 01 January 2025

The rollout of secondary pensions moves into its next phase today, capturing businesses with as few as six staff.

The scheme launched on 1 July, at the time requiring employers in Guernsey and Alderney with 26 or more employers to automatically enrol eligible employees into approved pension schemes.

In October it was extended to those with 11 and more staff.

Employment & Social Security launched the scheme to help ensure future generations of pensioners can live more comfortably with access to a good workplace pension scheme as well as their States pension.

Employers can select any qualifying pension scheme, but they may also offer Your Island Pension to employees as an alternative.

The States established YIP, which is governed independently by Sovereign Pension Services (CI) Limited.

ESS President Peter Roffey recently said that on-boarding to YIP had been "encouraging".

As at 15 November, 294 applications had been received from employers wishing to set up pension schemes under YIP.

Of those, 186 pension schemes had been launched by that date, 31 had been signed off and were awaiting launch, and a further 77 applications were being processed.

"The approximate expected membership numbers in relation to these 294 applications is over 3,500 employees.

"And of course, the number of people who have started contributing to an occupational pension scheme since the Secondary Pensions Law came into force is likely to be higher than this as employers are not obliged to use YIP."