Guernsey companies urged to prepare for mandatory secondary pensions

The States of Guernsey has reminded larger employers to enrol employees in a pension scheme before 1 July

Larger employers in Guernsey and Alderney have been urged to automatically enrol eligible employees into an approved pension scheme.

Mandatory contributions into employee pots were approved by States members in 2022.

The change will apply to employers with 26 or more employees from 1 July this year.

It will then apply to smaller employers employers over the following 15 months, the States said.

A majority of workers aged between 16 and the state pension age would be eligible for automatic enrolment.

Deputy Peter Roffey, President of the Committee for Employment and Social Security, said businesses should act now.

He said: "Most of the larger organisations will have already made the necessary preparations but for any that haven't, now is the time to do so.

"I encourage these employers to start preparing for secondary pensions now as the process can take weeks or months to complete."

Employers already with a pension scheme should check with their provider to make sure it complies with the legislation, he added.