The States of Guernsey has now passed approval for the introduction of a Secondary Pension Scheme. This will make it a mandatory requirement for all Guernsey employers to enroll eligible employees into a qualifying pension scheme. Once enrolled an employee can then decide to opt out, but the employer still has a legal duty to re-enroll their employees every three years (if the employee has opted out) and the employee is able to opt out again if they so wish. For employees that do not opt out, the requirements will be that the employee contributes 1% of earnings in the first year of enrolment, which will then increase to 6.5% over a 7 year period. The employer contributions will start at 1% and increase to 3.5% over a 7 year period. Together the employer and employee contribution rate will be minimum 2% of earnings in the first year, rising to 10% after 7 years. Minimum rates can be changed for employer and employee providing that the joint employer and employee rate is not less than the minimum in any year.