Guernsey and Alderney secondary pension scheme delayed

The introduction of a government-approved secondary pension scheme for Guernsey and Alderney has been delayed.

The scheme was due to be established in 2022 after being approved by deputies, but Brexit and Covid-19 have caused a delay.

No alternative start date has yet been proposed. A delay was not unexpected given the challenges of the past year, and that it could help businesses already hit by the pandemic prepare for the scheme’s implementation.

Local employers will be obliged to offer a pension scheme for staff if they do not do so already, and to make contributions of up to 3.5% of salary.

The default scheme is to be administered by a UK auto-enrolment pension provider specialist, but many businesses are setting up new schemes with local providers.

Details of the delay are set out in Employment & Social Security’s Social Security Contributory Fund Accounts 2020, due to be discussed by the States on 16 June.

September 18, 2024

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Jersey will see an end to the temporary reduction in Social Security contributions and a percentage rise from 4% to 6% for employee contributions from January 1st 2023.

There have also been annual updates to Guernsey and Jersey tax and social security thresholds, more details of these annual changes can be found by using the following links:

Click here for more information on 2023 Jersey Tax rates, allowances and reliefs

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Under the current system employers submit their tax, social security, and manpower information on different returns.

From January 2022, employers will submit a Combined Employer Return (CER) every month, which will include tax, social security contributions and manpower all on the same return.

The deadline for the first return under the new system is 15 February 2022. 

To complete the CER, employers who use their own payroll software will need to make changes to their systems. Employers who use the online employer returns form will be redirected to a new form when they submit their January 2022 return.

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“We’re committed to achieving this by modernising our legislation, providing easier access to services online, ensuring all customers can understand and meet their obligations while reducing costs.”

“The new return will make the submission process easier for employers but it’s important that employers are sufficiently prepared by having the correct information for their employees. We have been updating employers for some time and there is detailed information and advice on how to prepare for the changes on a dedicated webpage.”

More information about changes is available via the Government of Jersey website: www.gov.je/CombinedEmployerReturn

Payroll suppliers and employers have received information about the changes to give them enough time to update their systems and software.

Employers can also request IT specifications for their payroll provider, or subscribe to regular email updates by emailing: cer@gov.je

Source: Government of Jersey News Release.

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We have worked with Offshore Payroll for a few years to help deliver efficient payroll services to our clients, and to support those clients running their own payroll function. It is great to work with an online, forward-thinking, solution, that is actively engaging with users to improve functionality and add new features.

In Guernsey we are used to finding software work-arounds where the technology was not initially designed for businesses based offshore, but Offshore Payroll has been specifically designed with offshore in mind, which is fantastic, and the locally based support means that help is never far away.

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