‘Historic milestone’ as new auto-enrolment pension scheme approved
The Government has approved details of the new pension auto-enrolment scheme ahead of its expected introduction in 2024.
Workers will be automatically signed up to a pension plan co-funded by their employer and the State but they can opt out if they wish to leave.
This plan is for employees who are not already in an occupational pension scheme.
Rather than opting in, they will be automatically enrolled and will have to opt out if they wish to leave.
Workers will have their pension savings matched on a one-for-one basis by their employer. The State will also provide a top-up of €1 for every €3 saved by the worker.
The bill now go before the Oireachtas Committee on Social Protection for Pre-Legislative Scrutiny ahead of its expected introduction in early 2024.
Minister for Social Protection Heather Humphreys said it was a historic milestone in the journey towards enabling people who are currently without pension coverage to save for their retirement.