What is auto enrolment?
Today, we are all living longer healthier lives. However, as a nation, we are not saving enough for our retirement. Many are planning to rely solely on their state pension which could lead to a reduced standard of living. To combat this issue, the Irish government aims to bring in an auto enrolment system where all employers would enrol their employees into a workplace pension scheme and contribute towards the employee pension pot. The details for auto enrolment are still being ironed out by the government, but it is hoped that the process will begin in the next few years.
Auto Enrolment in the UK
Similar legislation was brought into the UK in 2012, where millions of employees are now saving towards their retirement. In the UK, eligible employees who meet certain criteria are automatically enrolled into a workplace pension scheme. Both the employer and the employee must pay minimum contributions into the pension pot. All other employees have the right to join or opt in to the workplace pension scheme, depending on their age and earnings.
Auto Enrolment in Ireland In Ireland, all employers are likely to have certain mandatory duties to complete, such as choosing a workplace pension scheme, correctly informing employees about their rights, calculating who needs to be enrolled into a pension scheme, calculating contributions, processing these payments through payroll software, showing contributions on employee payslips and completing a declaration of compliance to inform the Irish government that you have complied with the law.