Secondary Pension Legislation
Secondary Pension Legislation: We can't avoid it any longer, it's happening very soon…
The new secondary pension legislation is coming into effect on 1 July 2024 and is a significant step towards ensuring the financial well-being of employees in Guernsey. This change marks a significant shift in how pensions are provided in the workplace, creating a buzz among employers across the island.
At Leapfrog, we have been working with our clients to ensure they are prepared for this transition, whether they are aligning their existing schemes with the new law or implementing new schemes for their employees.
What the New Legislation Means for Employers
The new secondary pension legislation mandates that all employers must offer a workplace pension scheme to their employees. This change is designed to enhance the financial security of Guernsey’s workforce by ensuring that everyone has access to a reliable pension plan. Employers will need to:
Review and, if necessary, update their current pension schemes to comply with the new requirements.
Introduce a compliant pension scheme if they do not already have one in place.
Ensure that their payroll systems are configured to handle the new pension contributions seamlessly.
Why Pensions Matter
We've heard a lot about pensions as the law's implementation date approaches, and for good reason. Pensions are crucial for providing financial stability in retirement. With people living longer, helping employees build a substantial retirement fund is more important than ever. Here’s why pensions are essential:
Financial Security: Pensions offer a reliable income stream in retirement, reducing the risk of financial hardship.
Tax Benefits: Pension contributions often come with tax advantages, making them a cost-effective way to save for the future.
Employer Matching: Many pension schemes include employer contributions, which can significantly boost an employee’s savings.
The Benefits of Offering Pension Schemes
Offering a pension scheme isn’t just about following the law; it’s also a powerful tool for attracting and retaining talent. In today's competitive job market, benefits play a crucial role in an employee’s decision to join or stay with a company.
How Leapfrog Can Help
Setting up and managing pension schemes can be complex, but you don’t have to do it alone. At Leapfrog, we’ve worked with several local pension providers who are experts in the field. These providers offer exceptional service and expertise, ensuring your pension scheme is compliant and tailored to your employees' needs.
If you’re unsure how the new secondary pension legislation affects your business or need assistance setting up a new pension scheme, Leapfrog is here to help. We are committed to supporting our clients through this transition and helping them maximise the benefits of offering comprehensive pension schemes.
What our Clients say
“As a business owner, ensuring compliance with the new pension laws and rolling out the scheme was going to be a formidable task on top of day to day operations. Fortunately, Vicki at Leapfrog made the process incredibly smooth and efficient. Staff communication was on point, and I could rest assured that this important transition was in very safe hands.“
Managing Director, Local Retail Company
“Navigating the complexities of pension compliance can be a challenging task, but Vicki at Leapfrog made the entire process effortless and stress-free. Her dedication has been instrumental in ensuring our current pension scheme was fully aligned with the new laws.”
Group Financial Controller, Local Creative Agency
Contact Us
If you have any questions or need assistance with your pension schemes, don’t hesitate to contact us. Together, we can ensure a smooth transition and a brighter financial future for your employees.
Call Vicki Eppelein on 01481 711188 or email [email protected]