Dáil Éireann Debate, Tuesday - 18 November 2025
725. Deputy John Paul O'Shea asked the Minister for Social Protection for clarity in relation to employees who currently have private pension arrangements or AVC’s in place which are not directly coming out of their wages; if these employees have a choice whether or not to enrol in the auto-Enrolment My Future Fund; and if he will make a statement on the matter. [63709/25]
Amharc ar fhreagraThe introduction of a pensions auto-enrolment system is a Programme for Government commitment, and one of my key priorities. The aim of introducing an 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 commence from the 1st January 2026.
Current and new employees aged between 23 and 60 years of age and earning €20,000 or above per annum (across all employments) who are not already in an approved supplementary pension scheme paid through payroll will be automatically enrolled into the new retirement savings system. Those employees who currently have private pension arrangements or AVC’s in place which are not directly coming out of their wages will be automatically enrolled provided they meet the eligibility criteria. That is because there will not be evidence of contributions to a pension in the payroll data reported by their employer to Revenue. However, they may opt out after six months mandatory participation if they wish during a two month opt out window in months seven and eight, and receive a full refund of their personal contributions.
Separately, NAERSA is working with the Pensions Authority to develop exemption standards for pension schemes. These may include those schemes and PRSAs where contributions are made outside of payroll. When those standards are agreed I will promulgate them through Regulation. This may allow people to seek reviews of enrolment determinations made by NAERSA, and receive refunds where such reviews are upheld.
Finally, it is worth noting that there is no downside for an employee being auto-enrolled in My Future Fund. For every €3 contributed by an employee, this will be matched by their employer, and the State will top it up with €1. In other words, every €3 contributed by an employee automatically becomes €7 which is then invested to grow over time. Additionally, the fees in My Future Fund will be kept low and transparent, thereby ensuring value for money for participants.
