Dáil Éireann Debate, Thursday - 15 January 2026
40. Deputy Barry Ward asked the Minister for Social Protection the position regarding safeguards that have been put in place to protect employees from unsavoury practices that would require them to join less favourable pension schemes in place of being registered under the My Future Fund; and if he will make a statement on the matter. [1404/26]
Amharc ar fhreagra50. Deputy Eoin Hayes asked the Minister for Social Protection the number of workers estimated to be due refunds as a result of the late introduction of regulations associated with auto-enrolment introduced in late December 2025 and which changed how employers calculated reductions in take-home pay. [2751/26]
Amharc ar fhreagra56. Deputy Darren O'Rourke asked the Minister for Social Protection his efforts to include all employers in the auto-enrolment scheme; and if he will make a statement on the matter. [1779/26]
Amharc ar fhreagraI propose to take Questions Nos. 40, 50 and 56 together.
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 access to a quality assured retirement savings scheme. The new system - known as My Future Fund - commenced on the 1 January 2026. Over 763,000 employees that weren't actively contributing to a qualifying pension or PRSA through payroll have now been automatically enrolled in My Future Fund.
My Department has evidence that some employers intended to compulsorily enroll their employees into occupational pension schemes at employer-only rates lower than those provided for in the Automatic Enrolment Retirement Savings Act (2024) in order to ensure that the employees concerned were not automatically enrolled into the My Future Fund scheme. In order to address these concerns, I have prescribed standards through a Statutory Instrument that will ensure that pension arrangements outside of My Future Fund are at least as favourable for the participating employee as they would be under the introductory contribution rates in My Future Fund. For instance, in the case of a defined contribution occupational pension scheme or a PRSA, the standards specify the total contributions amount to at least 3.5% of the employee’s gross pay, of which at least 1.5% must be made by the employer (subject to a maximum of €1200 per annum) to exempt an employment from enrolment in My Future Fund. For defined benefit schemes, the standards specify that those that confer a long-term benefit based on continuing employment, will allow such employments to be exempted.
It is important to note that these standards, which were developed by the Board of NAERSA following examination of this matter and taking account of the views of the Pensions Authority, do not question the nature and composition of schemes or arrangements, which are governed by the Pensions Act 1990 (as amended), and/or individual scheme rules – rather they set the basis by which members of such schemes may seek exemption from enrolment in My Future Fund for the employment to which the scheme or arrangement pertains. Accordingly, the standards do not require employers to change payroll calculations at all. As the number of people enrolled who may now be exempt as a result of these standards is expected to be very low, the level of worker refunds required, if any, is expected to be insignificant.
In terms of next steps, the new State agency tasked with overseeing My Future Fund (the National Automatic Enrolment Retirement Savings Authority (NAERSA)) will focus on ensuring that any schemes claiming exemption from My Future Fund comply with these standards. This will involve assessing contribution levels over a three-month period. This assessment period is necessary so that the average level of contribution can be accurately calculated taking account of seasonal impacts, overtime, and commission payments. Employers of any schemes where the contribution amount, over this period, is less than the specified 3.5%, will be contacted with a view to assisting them to become compliant.
However, if an employer scheme continues to fall below the standard with no evidence of the employer making appropriate efforts either to reach the exemption standard or to allow their staff to enrol in My Future Fund, then the compliance powers available to NAERSA under Part 9 of the AE Act will be enforced.
It should be noted that most employers are hugely supportive of My Future Fund. This was evident in the roll out of the My Future Fund communications campaign coordinated by my Department, which included an employer focused phase that comprised of webinars, employer focused advertisements on TV, radio, and social media, face to face events, press publications, and large employer mailshots. The effectiveness of this engagement can be observed in the number of employers that have registered on the My Future Fund employers portal: by the 9 January 2026 the numbers of employers registered was 93,581 and this number is growing daily. This is a significant and positive outcome for the new scheme, which will ultimately provide employees with greater comfort and security regarding their retirement income.
I hope this clarifies matters for the Deputies.
