Gower helps Alderney businesses plan ahead for secondary pensions

Gower Financial Services has stepped into the breach to explain to Alderney businesses how the Secondary Pensions scheme will work.

A presentation by Associate Director Paul McCormick (pictured) and Scott Rowe, Director & Trustee of Gower Pensions, organised and hosted by the Alderney Chamber of Commerce, provided information on the requirements of the Secondary Pension framework.

Around 30 Chamber of Commerce members attended the presentation and lunch at the Braye Beach Hotel including a Q&A discussion on the finer details.

The legislation will require employers to automatically enroll employees into a qualifying pension scheme and, providing the employees does not opt out, to make minimum contributions that will increase each year until certain limits are met.  

The Gower presentation provided information on the requirements of the Secondary Pension framework, including the phased start dates, contribution rates and the rate at which these will increase. 

It also covered the default States of Guernsey scheme called ‘Your Island Pension’, available on a voluntary basis from January 1^st next year, together with alternatives available from private providers such as Gower. 

An approved secondary pension becomes mandatory for larger employers with 26 or more staff from July 1^st 2024. Employees will be able to opt out of the secondary pension arrangement made by their employer if they wish.

“It was a pleasure to deliver much-needed information on Secondary Pensions to the business community in Alderney,” said Mr McCormick. “The audience was fully engaged with the subject and the ensuing discussion was both lively and interesting. We will continue to update local business owners as more information is made available over the coming months.”

Andrew Eggleston, President of the Alderney Chamber of Commerce, added: “This was a welcome presentation offering sound advice to our members whose interest in the subject led to such an absorbing and diverse discussion.”