Dáil Éireann Debate, Tuesday - 17 February 2026
856. Deputy Claire Kerrane asked the Minister for Social Protection if workers who are paying into a private pension and not a work pension or have a previous work pension and now a private pension, can be fully excluded from auto enrolment; and if he will make a statement on the matter. [12113/26]
Amharc ar fhreagra857. Deputy Claire Kerrane asked the Minister for Social Protection if he considered the scenario of retired members of the Army or An Garda Síochána who retire earlier and may work in the private sector and do not want to be part of auto enrolment, can they be excluded from re-enrolment after two years where they opt out after six months; and if he will make a statement on the matter. [12114/26]
Amharc ar fhreagra858. Deputy Claire Kerrane asked the Minister for Social Protection the reason a person who opts out of auto enrolment is enrolled again after two years when they have chosen to opt out; the reason this is being done; and if he will make a statement on the matter. [12115/26]
Amharc ar fhreagraI propose to take Questions Nos. 856 to 858, inclusive, 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, thereby giving greater comfort and security regarding their retirement income.
The new system - known as MyFutureFund - commenced on the 1 January 2026. Over 763,000 employees that weren't actively contributing to a qualifying pension or PRSA through payroll were eligible and were automatically enrolled in MyFutureFund.
Firstly, MyFutureFund seeks to address the inertia and procrastination that exists when it comes to people providing for their retirement. A semi-compulsory retirement savings system which automatically enrols and deducts contributions from eligible workers is appropriate for overcoming that inertia. However, it is also recognized that there should be space for individual choice regarding participation in the system. Thus, it was decided that participants would be allowed to opt out during a two month window after six months mandatory participation in the scheme. The reason why the participants who chose to opt out are re-enrolled after two years is to prevent them falling back into inertia regarding their retirement. Instead, they are 'nudged' by re-enrollment to re-consider the provision they have made for their retirement and the benefits of participating in MyFutureFund. Finally, it should be noted that the policy of re-enrolment received widespread public support during the Strawman consultation of 2018 which sought views from stakeholders and the wider public on various aspects of the design of the system.
Secondly, where a worker is paying into a private pension, they may be fully excluded from My Future Fund provided their arrangement meets the standards set out in regulation for exempt employment. In the case of 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. As the National Automatic Enrolment Retirement Savings Authority (NAERSA) has no awareness of private pensions outside payroll, initially a worker with a private pension will be brought into My Future Fund provided they meet the eligibility criteria. Therefore, in order to be excluded from My Future Fund, such a worker should contact NAERSA (options are set out at www.myfuturefund.ie/contact-us) to seek a review of their enrolment and furnish evidence of their pension arrangement to seek an exemption.
Thirdly, where a worker is a retired member of the Army or An Garda Síochána working in a private sector employment, they will be automatically enrolled into MyFutureFund provided they meet the eligibility criteria. If they do not wish to continue their participation in MyFutureFund, they may opt out after six months, during months seven & eight and get their employee contributions refunded.
Finally, it is worth noting that there is no downside for an employee being auto-enrolled in MyFutureFund. 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.
I hope that this clarifies matters for the Deputy.
