4 February, 2025
Effective July 1, 2022, the British overseas territory Gibraltar expanded its auto-enrollment occupational pension program to cover private-sector employers with 101 to 250 employees. Previously, the program only covered private-sector employers with at least 251 employees, but it is gradually being extended to smaller employers until all private-sector employers are covered on July 1, 2027. The government launched the auto-enrollment program in August 2021 following the passage of the Private Sector Pensions Act 2019 to boost retirement savings among private-sector workers. According to the government, there were 23,638 private-sector workers in Gibraltar in October 2021, which represented around 78 percent of the territory’s labor force.
Other key features of the auto-enrollment program include:
In addition to occupational pension plans, Gibraltar’s pension system consists of a social insurance program that provides old-age, disability, survivor, maternity, medical, work injury, and unemployment benefits. To finance the program, employees contribute 10 percent of weekly covered earnings and employers contribute 20 percent of weekly covered payroll. (Certain minimum and maximum amounts apply to employee and employer contributions.) To receive a full old-age pension (State Pension) under this program, an individual must have reached age 65 (men) or 60 (women) and have at least 2,250 (men) or 2,000 (women) weeks of contributions. A partial old-age pension is paid if an individual has reached the normal retirement age, does not qualify for a full pension, and has at least 585 (men) or 520 (women) weeks of contributions. Currently, the full monthly old-age pension is £463.75 (US$557.96), and the minimum monthly old-age pension is £120.35 (US$144.80).
Source: Social Security Administration
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