Employers with 26 or more staff must add eligible employees to an approved pension scheme from today (1 July).

The first phase of the secondary pensions scheme is now in effect, with smaller businesses expected to do the same over the next 15 months.

Some employers will need to fix their existing scheme rules so it qualifies.

Bosses will need to automatically enrol their workers on an approved scheme by:

• 26+ staff: 1 July 2024;
• 11 - 25 staff: 1 October 2024;
• 6 - 10 staff: 1 January 2024;
• 2 - 5 staff: 1 July 2025;
• 1 staff: 1 October 2025.

Deputy Peter Roffey, President of the Committee for Employment & Social Security, says this is a huge milestone:

"I am extremely proud of the work from politicians, civil servants, and a range of third-party experts over the course of many years to bring this legislation to fruition.

"This law will support future generations of pensioners to achieve a more comfortable and financially independent retirement by ensuring that all employees have access to a good workplace pension alongside their States Pension.

Bosses can choose from any qualifying pension scheme, but if it is not made compulsory in their employee's contract they may have to offer 'Your Island Pension' as an alternative.

READ: Early Take Up For Secondary Pension

The States of Guernsey facilitated the establishment of the alternative pension to ensure that everyone has access to an affordable pension scheme.

Deputy Roffey says the scheme will help to avoid the prospect of a major problem with pensioner poverty, while also maintaining a sustainable welfare budget in the long term.

"Most employers affected by this initial phase of the Secondary Pensions Law will already have a pension scheme in place. However, as we move into the next phase and beyond there will be more employers that do not have a pension scheme.

"I encourage these employers to get in contact with their chosen pension provider as soon as possible as it can take weeks or months to set up a pension scheme."