Social Protection Minister Heather Humphreys has pledged that the State’s new auto-enrolment (AE) pension scheme will be introduced before the end of 2024. Draft legislation designed to set up the new pension auto-enrolment system was approved by the Cabinet in March. Under the scheme, contribution rates will be phased in over the next 10 year period, starting at 1.5% of gross pay for the first 3 years.
Publicly available data tells us that only 56% of the total workforce in Ireland have a pension, with the private sector behind this at 35%. Employers do need to take the necessary steps now to get ahead of the deadline and discuss retirement provision with their employees.
If you are an employer and have yet to set up an occupational pension scheme for your employees, please get in touch with the LHK Financial team now to arrange a consultation. We can provide an overview of how auto-enrolment is expected to work and how it compares to other group pension plans.
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