04/06/2025

The Irish government has confirmed a further delay to the implementation of pensions auto-enrolment, pushing the new proposed start date to 1 January 2026. This marks the third delay since the scheme was first proposed in 2018, that had an original implementation date of 2022.

The scheme, known as My Future Fund, was previously set to launch on 30 September 2025, but Minister for Social Protection Dara Calleary stated that the delay would allow businesses and payroll providers more time to prepare while aligning the system with the standard tax year.

Key Details of My Future Fund:

• Eligibility: Workers aged 23-60, earning €20,000+, and not already in a pension scheme.
• Contributions: Starting at 1.5%, rising to 6% over a decade.
• Employer Matching: Employers contribute an equal amount to employees.
• State Top-Up: The government will add €1 for every €3 saved by employees.
• Opt-Out & Re-Enrolment: Employees can opt out after six months, but will be re-enrolled every two years.

Concerns from Businesses:

While the scheme is expected to benefit over 800,000 workers, many employers have raised concerns over costs and the lack of clear guidance on how the system will be implemented practically.

If they have not already done so, Members  should start preparing for the auto-enrolment pension scheme. Some measures include:

1. Understanding the Requirements– Employers must match employee contributions, starting at 1.5% and rising to 6% over a decade.
2. Assessing Financial Impact– Businesses should budget for the additional costs and consider how it affects payroll expenses.
3. Reviewing Existing Pension Schemes– If a company already offers a pension, it must ensure it meets the qualifying criteria to exempt employees from auto-enrolment.
4. Updating Payroll Systems– Employers need to ensure their payroll software can handle automatic deductions and contributions.
5. Communicating with Employees– Workers may have questions about opt-out options, contribution rates, and long-term benefits.
6. Preparing for Compliance– The scheme will be overseen by the National Automatic Enrolment Retirement Savings Authority (NAERSA), and businesses must comply with its regulations.

We previously provided a detailed update to members on the requirements of the scheme which can be accessed here ROI Autumn 2023 Newsletter – Employers Federation Northern Ireland

We will continue to update Members on the implementation of the ‘My Future Fund’ scheme and any further delays to the proposed commencement  date.