Guernsey Secondary Pension Proposals

Background

Following its review of Personal Tax, Pensions and Benefits in 2015, the States of Guernsey realised that 60% of the working age population do not have any private pension provision and intend to rely solely on the current state pension. As this poses significant risks to public finances, the States decided that it should develop policies aimed at ensuring adequate personal or workplace pension provision in Guernsey and Alderney.

At the States' meeting in February 2016 an outline proposal for a secondary pensions system was approved to encourage Guernsey and Alderney residents to make greater pension provision.

In the broadest terms, the proposals impose semi-compulsory pensions in that employers must automatically enrol staff either into a States' secondary pension scheme ("SPS") or private qualifying pension scheme, but employees can choose to opt out. That optout lasts for 2 years. When it expires, the employee will automatically be re-enrolled,