The Auto-Enrolment Retirement Savings System arises from legislation introduced by the Department of Social Protection and establishes a statutory retirement savings scheme for eligible employees.
For the purposes of the legislation, an “employee” is defined broadly as a worker who is paid by an employer, regardless of whether that employer is in the public or private sector.
Section 38 employees are employed by organisations funded under Section 38 of the Health Act 2004 and are generally regarded as public servants, employed directly or aligned with the HSE in respect of standardised pay and pension arrangements. In practice, Section 38 employees are members of established occupational pension schemes and therefore would not generally be impacted by the auto-enrolment legislation, as the scheme is intended for employees who do not already have access to an occupational pension scheme.
Section 39 employees are employed by organisations funded under Section 39 of the Health Act 2004. These employees are employed by private bodies and are not employees of the State. Their pay and conditions of employment are determined by their individual employers. This employment status does not change as a result of the introduction of auto-enrolment. Where Section 39 employees do not have access to an occupational pension scheme and meet the eligibility criteria set out in the legislation, they may fall within scope of the auto-enrolment system.
Overall, the introduction of auto-enrolment does not alter the employment status of either Section 38 or Section 39 employees.