Corporate and Personal Pension Plan

A Corporate and Personal Pension Plan is a competitive alternative to the Occupational Pension Scheme and is open to all persons with Gibraltar sourced income. 

What is the Private Sector Pensions Act 2019

The Private Sector Pensions Act 2019 (the Act) came into force in August 2021.  It establishes a regime that will eventually enable all eligible employees in Gibraltar’s private sector to access a workplace pension scheme should they wish to do so.

What does the Act do? 

The Act makes it compulsory for all employers in Gibraltar, starting with the largest (in number of employees), to provide access for all eligible employees to a pension scheme in addition to the existing State Pension. 

Should the employee choose to join the pension scheme, the Act also makes it compulsory for both the employer and employee to contribute a minimum amount each week or month (depending on how the employee is paid) to the employee’s pension fund.

Compliance

The Act establishes a Pensions Commissioner in Gibraltar, who will keep a register of all employers and their employees’ status. The Commissioner will verify payments made under pension plans and investigate complaints. The Commissioner is provided with powers to facilitate the enforcement and monitoring of compliance with the Act, as well as powers to be able to fine anyone found in breach of the Act.

Contributions

The Act sets outs that a member of a pension plan and their employer must contribute in accordance with the provisions of the pension plan and the regulations “such amounts as are required to fund the benefits accruing under the pension plan, from the date of membership in the pension plan, a sum equal to 2% per annum of the employee’s earnings”.

Chief Minister Fabian Picardo subsequently clarified, in a speech in July, that: “The employer and the employee will each have to contribute 2% to the pension scheme”. Employers and employees may choose to make higher contributions at any time and may each make different contributions, as long as a 2% minimum is met.

The pension plan we offer comes with a number of features and conditions:

• Licensed Trustees regulated by the Gibraltar Financial Services Commission
• Fully licensed administration
• Data protection
• Tax relief on contributions to Gibraltar registered companies
• Chargeable events rules apply on income
• Tax relief allowances on personal contributions for individuals employed via a Gibraltar registered company
• The plan is open to all persons with Gibraltar sourced income
• Fully Indemnified Investment Consultant recommendations
  Competitive Fee Structures

To find out more from Fiduciary Pensions please call us at pensions@fid.gi or call us on 20076651 to arrange a meeting.