Guernsey Employer Schemes

What Types of Schemes are available for Guernsey Employees?

The simplest is a multi-member RAT tailored to the Employer, you may wish to pay for the employee's plan cost as part of a benefits package or even subsidise the plan. These arrangements are under Section 157A of the Income Tax (Bailiwick of Guernsey) Law.

The difference is payroll deduction is done through a simple monthly transfer and the Trustee funds the individual plans from there.

There are also Section 150 Schemes, these are for defined benefits (DB) or hybrid defined benefit schemes that are a mix of defined contribution (DC) these two types. Both of these require an Actuary to undertake the design and annual appraisal of the arrangement.

What Types of Schemes for Overseas Employees of Guernsey Companies?

Never the twain shall mix, if you have Guernsey employees seconded overseas you need to separate non-Guernsey payroll contributions from Guernsey tax-relieved contributions. These are commonly under Section 40(ee) and 40(o). Jersey located employees can be treated differently due to the Guernsey and Jersey Tax treaty.

Secondary Pension Schemes

It's coming, confirmed start date is from July 2024 when all Guernsey Employers will be required to either compulsorily contract with the States Scheme or use this opportunity to start their own, Fairfield can help those small businesses with low-cost multi-member solutions.

How can Fairfield help?

We can help you find the right trustee and guide you through the process. We would normally be engaged by the Sponsor to deal with the Member's investments and undertake investment monitoring and suitability assessments.