Pension Auto-Enrolment
Pension Auto-Enrolment for Payroll and Outsourcing opportunities
Pension Auto-Enrolment
Pension auto-enrolment is a new retirement savings scheme designed to provide a pension fund for employees who don't currently have one. Each employee will have a pension fund known as My Future Fund.
From the commencement date on 1st January 2026, it will be gradually phased in over the course of a decade.
It has been set up to provide a retirement plan for people without a work or private pension. This is designed to help people save towards their retirement and not to be solely dependent on the State pension. The purpose of auto-enrolment is to supplement the State Pension, not to replace it.
What is Pension Auto-Enrolment
• Pension auto-enrolment is a new retirement savings scheme designed to provide a pension fund for employees who don't currently have one.
• Each employee will have a pension fund known
as My Future Fund.
• Each employee will have a pension fund known
as My Future Fund.
When is it happening
• It will commence on 1st January 2026
• From the commencement date it will be gradually phased in over the course of a decade from that date.
• From the commencement date it will be gradually phased in over the course of a decade from that date.
Why is it being introduced
• It has been set up to provide a retirement plan for people without a work or private pension to save for retirement.
• To help people save towards their retirement and not to be solely dependent on the State pension. The purpose of auto-enrolment is to supplement the State Pension and not to replace it.
• To help people save towards their retirement and not to be solely dependent on the State pension. The purpose of auto-enrolment is to supplement the State Pension and not to replace it.
What employees are eligible?
• All employees in Ireland who:
− Earn over €20,000 per year.
− Are aged between 23 and 60.
− Are not already in a pension scheme.
− Paying PRSI at class A, B, C, D, H & J.
− Earn over €20,000 per year.
− Are aged between 23 and 60.
− Are not already in a pension scheme.
− Paying PRSI at class A, B, C, D, H & J.
• Eligible employees will automatically be enrolled.
• If an employee is a member of an Occupational Pension Scheme, Retirement Annuity Contract (RAC) or has a Personal Retirement Savings Account (PRSA) or Pan-European Personal Pension Product (PEPP), where this is recorded in payroll, they will not be auto-enrolled.
• For the first few years of auto-enrolment, any pension contribution greater than zero paid through payroll, will be enough to exempt an employee.
• People who are self-employed and those who are not currently earning an income through an employer will not be enrolled and will not be able to opt in initially.
• If the employee has another employment for which pension
contributions are not paid, they can be auto-enrolled or opt into the
scheme in respect of that second employment.
• If an employee is a member of an Occupational Pension Scheme, Retirement Annuity Contract (RAC) or has a Personal Retirement Savings Account (PRSA) or Pan-European Personal Pension Product (PEPP), where this is recorded in payroll, they will not be auto-enrolled.
• For the first few years of auto-enrolment, any pension contribution greater than zero paid through payroll, will be enough to exempt an employee.
• People who are self-employed and those who are not currently earning an income through an employer will not be enrolled and will not be able to opt in initially.
• If the employee has another employment for which pension
contributions are not paid, they can be auto-enrolled or opt into the
scheme in respect of that second employment.