Guernsey's secondary pension scheme to become law from July 2024

Larger employers in Guernsey and Alderney will be required to enrol their staff in a secondary pension scheme from 1 July 2024.

Called the Your Island Pension (YIP) scheme, it will also be possible to sign up voluntarily from 1 January 2024.

A large employer is one with 26 or more staff.

However, smaller places of work will be obliged to start phasing in pensions by autumn 2025.

The deadline to have this completed will depend on the size of the employer.

For employees who do not want to sign up for the scheme, there will be an option to opt out.

Further information on YIP and what is expected of employers will be available from July this year.

Currently, it is thought around 65% of the working population are not contributing to any pension.

This is a figure the States is hoping will decrease once this scheme begins.

It says islanders with a good pension generally need less help from the state in their later years, and can help them have a good life in their retirement.

President of the Employment and Social Security Committee, Deputy Peter Roffey said: "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.”

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