The Programme for Government contains a commitment to introduce the Automatic Enrolment (AE) Retirement Savings System. The aim of introducing AE is to address the pension coverage gap that exists in Ireland and to provide workers with greater comfort and security regarding their retirement income. The new system - to be known as My Future Fund - will commence from 1 January 2026. The implementation of My Future Fund will pave the way for around 750,000 workers to be brought into a retirement savings scheme for the first time and I look forward to its implementation.
My Department has been engaging with employers, including those in the community and voluntary sector, since the release of the AE 'strawman' public consultation in 2018. Its impending implementation has also been well-flagged since the enactment of the AE Act in 2024. Therefore, employers have been given a substantial lead-in period to budget appropriately for its introduction, including through budget negotiation with a sponsor where appropriate. Additionally, my Department has been proactive in advising other Departments, including the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation about this issue during 2025.
It is also worth mentioning that, in response to employer feedback, the design of the AE system provides for phasing in of the contribution rates over a decade. Employees will be required to make initial contributions of 1.5% of gross earnings, rising by 1.5 percentage points every three years until it reaches a maximum contribution rate of 6% in Year 10. These contributions will be matched on a ‘one-for-one’ basis by employer contributions, and 'topped-up' by the State at a rate of €1 for every €3 the employee contributes. This phased approach arose as a consequence of the consultation the Department undertook in the design of the system. For community and voluntary organisations (and employers more generally), this approach also gives very clear certainty as to the rates that will be applicable so as to facilitate the gradual absorption of these labour costs over time.
With regard to engagement with employers over the past 18 months, including those in the community and voluntary sector, we have hosted thousands of employers and related professionals through many webinars, conferences and in person stakeholder meetings, with more planned over the remainder of this year and into next. We are also implementing an extensive advertising campaign aimed specifically at employers and have made a wealth of information available through our AE hub at www.gov.ie/autoenrolment and brought this to the attention of all of the representative organisations.
I hope this clarifies matters for the Deputy.
