Monday 30 May 2022
The Committee for Employment & Social Security has expressed its disappointment at the States' decision to delay consideration of the latest secondary pensions policy letter, confirming that a delay to implementation is unavoidable.
The Policy Letter sought States approval on the governance arrangements for Your Island Pensions (YIP), the government-facilitated secondary pension scheme, as well as proposals for monitoring employer compliance with their obligations under new legislation. However, last week, the States of Deliberation voted to delay consideration of the Policy Letter until 23rd November 2022.
Under planned legislation, employers will be required to contribute at least minimum levels into either a qualifying pension scheme or into YIP, following automatic enrolment of their employees. Employees will be able to opt out of the scheme if they wish.
Following a competitive local tender exercise, Sovereign Pension Services (CI) Limited (Sovereign) were selected by the Committee as the preferred provider of YIP.
Sean Gillease, Managing Director of Sovereign Pension Services (CI) Limited, said:
"Following the meetings of the States of Deliberation on 25th and 26th May, Sovereign wishes to affirm its commitment to providing trustee and administration services for the Your Island Pension Scheme, notwithstanding the decision to delay the debate on the Policy Letter for the Implementation of the Your Island Pension Scheme until November 2022.
"Sovereign remains committed to working with the States of Guernsey to deliver an efficient and much-needed solution to address the issue of insufficient private pension saving on the island."
Deputy Peter Roffey, President of the Committee for Employment & Social Security, said:
"We are grateful to Sovereign for their continued commitment to the provision of YIP in light of the decision to delay consideration of the Policy Letter.
"It is inevitable that there will be some sort of delay to the currently planned implementation date of 1 October 2023 as a result of this. My committee is very conscious that employers and payroll providers need sufficient time to prepare once there is clarity around the implementation date and the legislation has been approved. Therefore, it is imperative that the Policy Letter is considered in November 2022 so that this policy, for which most Members of the Assembly have expressed their support in principle, can be implemented as soon as possible."