Smart Pension has won a tender to be named as the preferred provider to deliver the secondary pension scheme in Guernsey, which is set to be introduced into legislation in 2020.

It will operate the state sponsored Your Island Pension Scheme, which will see all Guernsey employees automatically enrolled into a workplace pension scheme for the first time.

The legislation is awaiting ratification by the States of Guernsey Parliament.

Although the system will take a similar form as auto-enrolment (AE) in the UK, Your Island Pension Plan will be a single private scheme, overseen the Guernsey’s Committee for Employment and Social Security, similar to Nest in the UK.

Commenting on the Smart Pension being named as the AE provider in Guernsey, States of Guernsey Committee for Employment and Social Security president, Michelle Le Clerc, said: “We’re excited to announce the selection of Smart Pension as the proposed provider of the Your Island Pension.

“We’re confident that Your Island Pension will change the pension landscape in Guernsey, ensuring every Islander has access to a product which is affordable but doesn’t compromise on service standards.

“We’re thrilled to be taking the first steps on this journey, looking ahead to a brighter and more financially sustainable future for Guernsey’s savers.”

Under the new secondary pension legislation, Guernsey employees will have the option to opt out of the scheme, but there will be an obligation on the employer to re-enrol employees every three years.

Smart Pension co-founder and CEO, Andrew Evans, added: “It’s an absolute privilege to partner with the States of Guernsey right at the beginning of the island’s auto enrolment-style pension journey.

“The introduction of AE in the UK has transformed the retirement savings culture for workers and undoubtedly it will have the same impact in Guernsey.

“The fact that employees will make contributions from their very first pound of earnings shows the commitment that the States of Guernsey has to deliver a better retirement outcome for their residents.

“This element will undoubtedly be closely observed by the UK government as it evolves.

“Your Island Pension savers will all benefit from Smart’s unrivalled savings and investment technology including an app which will display their savings balance in real time on their smartphones.”

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