THE PRIVATE SECTOR PENSIONS ACT 2019

Backround:

In July 2019 the Government of Gibraltar introduced the Private Sector Pensions Act 2019 which has been with an effective date of the 4th August 2021

Key Informative Points:

1. An employer as well as a company also includes an individual (self employed) or an unicorporated body. An employer under the Private Sector Pension Bill in it’s wider definition is interpreted as a body corporate.

2. Eligibility for membership:

(a) An employee of fifteen years of age or more.

(b)Having completed 12 months of employment with the employer to whom the pension plan relates prior to membership in the pension plan.

(c) In a period of 12 months their earnings exceed or are equal to £10,000

3. Contributions:

(a) A member of a defined contribution pension plan and his employer shall both contribute equally to the pension fund of the pension plan for the benefit of that member from the date of membership in the pension plan, a minimum of 2% per annum of the employee’s earnings.

(b) The employer shall, at least once in every month, withhold from the member’s earnings the relevant amount of the member’s contribution and pay the same within thirty days following the month in which the amount was withheld.

(c) If, immediately before the commencement of this Act, there is in existence a pension plan, the employer shall continue and maintain the pension plan in accordance with this Act, this includes registering the pension scheme with the Commissioner for Pensions.

4. Registration:

(a) Within 90 days from the date on which the employer is required to comply, the employer is required to:

1. Register their pension scheme with the Commissioner for Pensions (GFSC)
2. Documents evidencing participation of each employee
3. Name, address and occupation of all trustees of the Pension Scheme
4. Name and address of Adminstrators of the Pension
5. Details of employees who have opted out
6. Details of employees who are not eligible

5. Information to members & third parties:

(a) Schemes are to make available any such information on request as may be relevant to:

1. A member
   
2. A former member
   
3. Any other person entitled to benefits under the pension plan;
   
4. An agent authorised in writing by a person mentioned in paragraph (a), (b) or (c)
   
5. An employer who participates in the pension plan

(b) Where a member ceases to be a member, the employer must provide a detailed statement of the fund value, any ancilliary benefits and portability of the plan.

6. Continuity of Membership:

(a) Membership in the pension plan shall continue until the individual attains the pensionable age (currently 65).

(b) Individuals employed by more than one employer shall be enrolled as a member of each pension plan for which he has met the criteria.

7. Opt Outs & Ceasing Membership:

(a) Once an employee becomes a member they do not have a right to opt out, instead they must cease membership

(b) Once the member has opted out or ceased membership, he/she has theright to opt back in but currently neither employer, scheme administrator nor trustee has the olbigation to notify them periodically of this right.

8. Employer Liabilities:

(a) The directors and officers of a company or other body corporate that, as an employer, owes contributions are liable jointly and severally for contributions that became due while they were directors or officers, and proceedings may be taken under this section against all or any of them for recovery of those contributions. For the avoidance of doubt, proceedings may be taken under this section against persons who were directors or officers after they cease to be directors or officers, including persons who ceased to be directors or officers before the coming into force of this section.

(b) A person convicted of an offence under this Act is liable on summary conviction, to a fine not exceeding level 4 on the standard scale, or, in case of a second or subsequent offence, twice the amount at level 4 on the standard scale.