The introduction of a pensions auto-enrolment system is a Programme for Government commitment, and one of my key priorities. The aim of introducing an Automatic Enrolment (AE) system is to address the pension coverage gap that exists in Ireland, and to help provide for better retirement incomes for workers. The new system will be called 'My Future Fund' and it will launch from the 1st January 2026.
Between 2023 and 2024, my Department undertook an open EU tendering process to procure a fully outsourced managed service to administer My Future Fund. Following a rigorous evaluation process, Tata Consultancy Services (TCS) won the contract on the basis of providing the most economically advantageous tender that fulfilled the requirements of the tender specification. It should be noted that there was no legal basis for excluding TCS from participating in this process on the grounds of the company's activities in other jurisdictions.
TCS itself is a leading global IT services, consulting, and business solutions organisation, headquartered in India. Its workforce numbers over 600,000 employees worldwide across 51 subsidiary companies in 55 countries. Given its global reach, TCS has contracts with many Governments throughout the world, including in Israel. In the UK, TCS provides the operating system for their Automatic Enrolment system’s National Employment Savings Trust (NEST). Moreover Norway’s Sovereign Wealth Fund, which is considered by many to be the most ‘ethical’ funds, holds stakes in 15 separate Tata companies. This examples demonstrates the complexity of defining an investment as ethical or otherwise in a world of very complex supply chains.
Here in Ireland, TCS employs approximately 1400 people, mainly in Letterkenny. The placing of the contract in 2024 with TCS for the administration of My Future Fund has brought further employment to the Northwest with at least 60 people recruited in recent months and more expected in the coming months.
Finally, it is worth noting that Occupied Palestinian Territory (Prohibition of Importation of Goods) Bill would ban trade in goods with settlements illegally established in occupied territories, including Israeli settlements and any resources extracted from such settlements. The managed services contract with TCS would not come within the scope of the provisions of this Bill if it were to be enacted, as the contract does not require or facilitate trade of any kind with Israel.
I hope this clarifies matters for the Deputy.
