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Over 20,000 Channel Islanders to be enrolled into private pension scheme by 2020

Credit: PA Images

Employees in Guernsey earning above the Lower Earnings Limit of £7,176 per annum - and who pay social insurance contributions - will be eligible to enroll into a new private pension.

From 2020, it's estimated that over 20,000 people in Guernsey and Alderney will be automatically enrolled, according to a report assessing the impact of the scheme.

They can then choose to opt out if they wish.

Once the scheme is fully established, employees will contribute 6.5% of their salary into the scheme, with employers contributing 3.5%.

While some employers might find the prospect of an additional cost worrying, we are committed to developing a low-cost scheme with minimal administration burden to limit the impact on employers.

– Deputy Michelle Le Clerc, President of the Committee for Employment & Social Security