Wednesday 09 June 2021
The Committee for Employment & Social Security is seeking to reassure employers and pension providers that they will be given sufficient time to prepare for the incoming Secondary Pensions legislation.
The original aim was for the legislation, which is currently being drafted, to come into effect from January 2022, but the Committee has had to re-evaluate and adjust its implementation plan due to the effect that the pandemic had on the timeline of all aspects of the project. The Committee is very conscious of the need to provide employers and pension providers with adequate lead-in time to prepare and as a result is now targeting January 2023.
Significant engagement will take place with employers and pension providers in the lead up to the launch of secondary pensions to make sure that businesses are aware of their obligations.
Under this legislation, employers would be required to contribute at least minimum levels into either a qualifying pension scheme or into the new secondary pension scheme following automatic enrolment of their employees.
The main aim of the secondary pension scheme, which will be known as Your Island Pension (YIP), is to support more working age people to save for their retirement. This is so that they can add some private pension provision to their States pension (formerly old age pension).
Deputy Peter Roffey, President of the Committee for Employment & Social Security said:
"We know that employers need plenty of time to prepare for this change, and although we are disappointed that the date has slipped by 12 months, we think this is the right thing to do and hope that employers and pension providers will understand our reasoning for this postponement."