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, thereby giving greater comfort and security regarding their retirement income.
The new system - known as My Future Fund - commenced on the 1 January 2026. To date over 763,000 employees that weren't actively contributing to a qualifying pension or PRSA through payroll have been automatically enrolled in to My Future Fund.
In relation to the Statutory Instrument that I signed on the 23rd December, this regulation is designed to 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. 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 service, will allow such employments to be exempted.
These standards, therefore, apply to pension schemes paid through payroll as well as those that operate outside of payroll by way of an employee's length of service in that employment. Such pension schemes that operate outside of payroll can be found across all sectors of the economy, including manufacturing and services.
I hope this clarifies matters for the Deputy.
