Dáil Éireann Debate, Monday - 9 September 2024
1030. Deputy Richard Bruton asked the Minister for Social Protection the start date for auto enrolment for persons not already in a pension scheme, and the initial rate of contribution for workers, for employers, and for the State when the scheme commences. [35837/24]
Amharc ar fhreagraThe introduction of an automatic enrolment (AE) retirement savings system is a Programme for Government commitment and a key priority for me as the Minister for Social Protection.
Implementation of the AE system is now well underway, with the recent enactment of the Automatic Enrolment Retirement Savings System Act 2024 and the announcement of Tata Consultancy Services (TCS) as the preferred bidder to administer the AE system on behalf of the National Automatic Enrolment Retirement Savings Authority (NAERSA). The achievement of these two major milestones is significant and allows for Automatic Enrolment to become a reality in Ireland in 2025.
My Department is now focused on implementation, including putting in place ICT infrastructure, staffing and resourcing NAERSA, and conducting a procurement exercise for investment services providers. A communications strategy is being rolled out on an ongoing basis and will intensify as go-live approaches.
In terms of contribution rates, AE will be very gradually phased in over the course of a decade. When the scheme commences in 2025, employers and employees will make contributions at a rate of 1.5% each of the employee’s gross earnings, with the State topping up these contributions with an additional 0.5%. These rates will gradually increase every three years until they reach a maximum of 6% each from the employer and the employee and 2% from the State from Year 10 onwards.
