The Employment and Social Security Committee says it is watching closely after a trustee linked to Guernsey’s States-backed ‘Your Island Pension’ scheme was found “grossly negligent” in a $25 million court case brought by disabled airline pilots.

Guernsey’s Employment and Social Security Committee confirmed in a statement yesterday afternoon that it “has been closely monitoring the ongoing court action” involving Sovereign Trust (Guernsey) Limited. 

It comes after the trustee was found to have acted with gross negligence in regards to a fund intended for disabled pilots, although the final judgment has not yet been delivered and published.

​Sovereign Pension Services (CI) Limited administers the ‘Your Island Pension’ (YIP) scheme, established by the States of Guernsey to ensure all workers have access to a workplace pension.

Sovereign Trust (Guernsey) Limited, meanwhile, acts as the corporate trustee.

ESS have been quick to calm, ensuring islanders that the trustee does not hold any assets or funds directly, and claim the committee is “determined” to ensure that all pensions within the YIP scheme remain secure.

​Tina Bury, President of the Committee, said: “Sovereign Trust (Guernsey) Limited, part of the wider Sovereign Group, was appointed some years ago to lead the Your Island Pension Scheme which was established at the direction of the States to ensure all islanders have access to a pension through work.

“The Committee has been made aware of the court action, which is now nearing its conclusion, and while it would be inappropriate to comment on any implications at this stage, I can confirm we will be considering the final judgment in detail.”

Pictured: President of the Employment and Social Security Committee, Deputy Tina Bury.

In the $25 million claim brought by a group of 25 disabled former airline pilots the plaintiffs  claimed the firm mismanaged their money, with the business “strongly denying those allegations”. 

When the case started last year, advocates representing the pilots claimed the company had “gone to sea with a hole in their boat”, risking the group’s money.

The trial concluded in October last year, following the cross examination of Sovereign’s Group Risk and Compliance Director Stephen Hare. 

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