Auto-Enrolment in Ireland: An Employer Guide
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What is auto-enrolment?
November 2024 – Auto-enrolment is a new occupational pensions regime that will introduce mandatory retirement savings requirements for the first time in Ireland. It is set to be introduced from 30 September 2025.
The aim of auto-enrolment is to substantially increase the number of employees who are currently saving for their retirement. The Government has estimated that approximately 800,000 new pension savers will be created.
Auto-enrolment will have significant implications for employers. For many, it will present a major compliance and operational challenge and give rise to material additional business costs.
It is vital that all employers understand the extent to which auto-enrolment might impact them and the immediate and longer-term implications for their business and employees.
How will auto-enrolment work?
A summary of the key features of the new regime are below:
When will auto-enrolment start?
A commencement date of January 2025 was first proposed after the Automatic Enrolment Retirement Savings System Act 2024 was passed in July 2024. The Government recently announced a delay in the rollout of the auto-enrolment pension system, moving the launch date to 30 September 2025.
Work continues at pace to establish the infrastructure needed for MFF and NAERSA in time for the launch. While an administrator has now been appointed, there are a number of key elements that are outstanding. We expect to see accelerated progress over the next few months.
What should employers do now?
All employers need to quickly understand what auto-enrolment will mean for them and their employees. In short, retirement saving for employees will become mandatory, and employers will need to decide how they want to provide retirement benefits to employees.
Our analysis shows that most employers who already provide pension plans or PRSAs to employees, want to continue to use these and avoid the new central retirement savings system where possible. But to do this, employees (or employers on their behalf) need to be contributing to the pension plan prior to September 2025. If they are not, employees within the scope of the auto-enrolment requirements will be automatically enrolled into MFF.
For all employers, the challenge is clear: planning and preparation must start now to maximise the time available prior to commencement. Despite appearances, auto-enrolment is not straightforward and will need to be fully understood to minimise complications. Business, employee, and pension plan impacts need to be considered; options assessed and strategic decisions made in sufficient time before auto-enrolment commences.
Engagement with employees is going to be vital to explain the approach their employer is taking and what employees need to do next.
Auto-enrolment: It's time for employers to prepare
What key questions should employers consider?
Meet our Auto-Enrolment Consulting Team
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