New legislation for auto-enrolment pension scheme
The Automatic Enrolment Retirement Savings System Act 2024 has been signed into law and will start to be implemented in 2025.
The act creates a new national auto-enrolment pension scheme.
All employees aged between 23 and 60 and earning over €20,000 across all their employment but not already in an occupational or equivalent pension scheme, will be automatically enrolled. They may opt out after six months.
With the first enrolments set to happen in 2025, the introduction of auto enrolment will be gradually phased in over a decade, with both employer and employee contributions starting at 1.5%, and increasing every three years by a further 1.5% until they reach 6% by 2034.
Members are advised to check their HR records to assess any impact this might have on their practices and their staff.