Dáil Éireann Debate, Thursday - 26 February 2026
42. Deputy Barry Ward asked the Minister for Social Protection the position regarding the rollout of the auto-enrolment pension scheme; how any initial teething problems have been managed; and if he will make a statement on the matter. [13794/26]
Amharc ar fhreagra86. Deputy Barry Ward asked the Minister for Social Protection the position regarding supports for small businesses in relation to the auto-enrolment pension scheme; if he is conscious of the administrative and financial burden put on these businesses by this scheme; and if he will make a statement on the matter. [13793/26]
Amharc ar fhreagraI propose to take Questions Nos. 42 and 86 together.
MyFutureFund commenced on the 1st January 2026. All elements of the system are operating as planned. On the 1st January and since that date, based on analysis of payroll data from the Revenue Commissioners, over 763,000 employees were automatically enrolled in MyFutureFund. These employees work for approximately 105,000 employers. The scheme is now operating successfully and no major teething problems have occurred.
Payroll instructions have issued to these employers to deduct contributions from these employees' pay and to submit those details to the National Automatic Enrolment Retirement Savings Authority (NAERSA). Approximately €80 million of contributions have already been collected for investment with the three contracted investment managers.
Both the employer and participant website portals are fully functional. Since the 1st December, employers have been asked to register their company, contact and payment details with NAERSA on the employer portal so that the administrative burden for them and the management of the system is made as easy as possible. Most have done that and I would urge those yet to do it to complete that simple process as soon as possible. This very high level of compliance demonstrates the importance that employers place on MyFutureFund and their aspiration to do what is right for their employees, which I commend.
The largest number of queries from the public regarding the scheme since go-live has been in respect of opting-in to the systems. Since go-live, over 5,000 opt-in requests have been processed. This represents a higher than expected level of interest in this facility. Accordingly, my officials and NAERSA are now considering the possibility of running a specific advertising campaign regarding opting in to publicise the process and its benefits to the wider public.
With regards to the burden MyFutureFund places on employers, it is important to clarify that NAERSA is doing much of the administrative work with arises from the scheme.
The system is highly automated. It is based on contributions being made by employers and employees via existing payroll systems - all of this is automated and does not require manual intervention. Consequently, employers have absolutely minimal work to do in the operation of the system. They do not need to -
• train staff to use the system,
• manage the enrolment of employees, or
• provide advice to employees.
The administrative role of employers is limited to providing their details and preferred payment method in a simple once-and-done exercise through registration on the employer portal that takes but a few minutes to complete. Thereafter their role is simply to ensure that the contributions due are paid on time.
It should also be noted that every effort has been made to ease the financial burden on employers associated with the implementation of this important initiative. During the design phase, there was extensive engagement with employers through a public consultation exercise and with their representative organisations. As a result of that, the design of MyFutureFund was changed to provide for a phasing-in of contribution rates over a decade (rather than 6 years as originally planned), starting at a very low 1.5% of gross pay for the first three years. For employers, this approach gives them more time to adjust their budgets and it gives them very clear certainty as to the rates that will be applicable so as to facilitate the gradual absorption of these labour costs, thereby easing the burden on employers in implementing this reform.
I hope this clarifies matters for the Deputy.
