{"id":135379,"date":"2025-10-21T05:29:07","date_gmt":"2025-10-21T05:29:07","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/135379\/"},"modified":"2025-10-21T05:29:07","modified_gmt":"2025-10-21T05:29:07","slug":"state-and-pensions-sector-fight-over-workers-as-auto-enrolment-numbers-fall-to-750000-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/135379\/","title":{"rendered":"State and pensions sector fight over workers as auto-enrolment numbers fall to 750,000 \u2013 The Irish Times"},"content":{"rendered":"

Fewer people than initially expected will be subject to Ireland\u2019s new mandatory workplace pension<\/a>, My Future Fund, it has emerged, amid of war of words between the Department of Social Protection and employer and pension<\/a> groups.<\/p>\n

The Government has consistently said that up to 800,000 people are likely to find themselves enrolled in the fund, which will deduct 1.5 per cent of their gross salary from their after-tax income from January \u2013 a figure that will rise to 6 per cent over the next decade.<\/p>\n

However, papers released in the wake of Budget 2026 show the Government now expects the maximum number of workers likely to be affected has fallen by 50,000 to 750,000.<\/p>\n

Auto-enrolment will see anyone aged between 23 and 60 and earning more than \u20ac20,000 across one or more jobs automatically signed up to the new State scheme if they are not already a member of a private pension scheme through their employer or otherwise.<\/p>\n

[\u00a0Employers have just weeks left to prepare for first auto enrolment pension contributionsOpens in new window<\/a>\u00a0]<\/p>\n

The practical deadline for workers and their employers is the November payroll, which for many large employers is based on details lodged by the middle of the month \u2013 around November 14th.<\/p>\n

Anyone not providing evidence of payment into a pension by then will find themselves locked into the new scheme for at least six months. <\/p>\n

The Department has accused some employers of \u201cincorrectly informing staff that because of a change in legislation they are now obliged to join an employer sponsored pension scheme before the end of 2025\u2033.<\/p>\n

\u201cEmployers are reminded that it is an offence to take any action that hinders or attempts to hinder an employee from participating in the My Future Fund scheme,\u201d the department said, adding that \u201cany cases where employees are illegally obliged to join another pension scheme such that they are then prevented from accessing the My Future Fund scheme will be fully investigated.\u201d<\/p>\n

However, the Society of Actuaries, has warned the 100,000 or so workers who have yet to sign up to an occupational pension scheme that their employers offer to \u201clook before they leap\u201d into My Future Fund.<\/p>\n

Acknowledging that the My Future Fund scheme will be a \u201cgame changer\u201d for many workers with no pension coverage, it says that the 100,000 who have the option to join an existing employer scheme need to be aware that occupational pensions offer more flexibility in terms of early retirement options and the ability to make extra top-up contributions than My Future Fund.<\/p>\n

\u201cThese are very important for individuals with missing years of service [especially women who are more likely to have taken time out for caring],\u201d said Society of Actuaries spokeswoman Roz Briggs, adding that the new State scheme also does not offer life cover, a common feature of employer schemes.<\/p>\n

\u201cOne common narrative is that, for lower rate taxpayers, My Future Fund is better than occupational arrangements because the Government incentives are better,\u201d Ms Briggs said. <\/p>\n

\u201cHowever, employees need to be aware that in many existing workplace pension plans, their employers contribute more to the plan than they would under My Future Fund and in many cases this significantly outweighs the differences in State support.\u201d<\/p>\n

Joyce Brennan, the recently appointed chief executive of the Irish Association of Pension Funds, which speaks for the industry, urged workers to \u201cexplore their options\u201d.<\/p>\n

\u201cYour employer\u2019s pension plan could offer better value, more flexibility, and greater long-term benefits,\u201d she said. \u201cMy Future Fund and your employer\u2019s pension plan operate in fundamentally different ways. That\u2019s why it\u2019s worth taking the time to compare them. The right choice will depend on your income level, your tax rate, and the specific contribution rate and structure offered by your employer. <\/p>\n

\u201cChoosing the right pension plan can significantly impact your future savings and your take-home pay today,\u201d she said.<\/p>\n

The Government has pencilled in \u20ac154 million in Budget 2026 to cover its expected contributions to the auto-enrolment scheme next year. That means it expects \u20ac462 million to be deducted from workers\u2019 pay to cover their contributions to the My Future Fund.<\/p>\n","protected":false},"excerpt":{"rendered":"Fewer people than initially expected will be subject to Ireland\u2019s new mandatory workplace pension, My Future Fund, it…\n","protected":false},"author":2,"featured_media":64986,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[21434,79,20812,18,19,17,2987,234,235],"class_list":{"0":"post-135379","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-auto-enrolment","9":"tag-business","10":"tag-department-of-social-protection","11":"tag-eire","12":"tag-ie","13":"tag-ireland","14":"tag-pension","15":"tag-personal-finance","16":"tag-personalfinance"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/135379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=135379"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/135379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/64986"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=135379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=135379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=135379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}