Anne O'Connell Solicitors | View firm profile
The Government’s new statutory retirement savings system will go live from 1st January 2026. The scheme known as MyFutureFund, will be overseen and administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA). NAERSA will identify which employees meet the eligibility criteria for auto-enrolment using Revenue payroll data and will enrol them, which should result in minimal administrative work for employers.
Employees will be enrolled automatically in the new pension scheme if they are:
* Aged between 23 years and 60 years;
* Not currently part of a pension plan; and
* Earn €20,000 or more per year (there is an earnings threshold of €80,000).
Employees will have the option to opt-out (after 6 months, but before 8 months) or suspend their participation in the scheme.
Employees who are under 23 or over 60 years of age, or who earn less that €20,000 a year, may opt into the scheme, with all contributions from their employer(s), the employee and the State applying.
The fixed contribution rates from the employer, the employee and the State will be phased over a period of 10 years and are set out below:
Year of the auto-enrolment scheme
Employee Contribution Rate
Employer pays
Government pays
1 to 3
1.5%
1.5%
0.5%
4 to 6
3%
3%
1%
7 to 9
4.5%
4.5%
1.5%
10 and after
6%
6%
2%
Employees who are already a member of an occupational pension scheme or trust, Retirement Annuity Contract (RAC) or have a Personal Retirement Savings Account (PRSA) or Pan-European Personal Pension Product (PEPP), which is recorded in payroll, will not be auto-enrolled and will not be able to opt in based on that employment. However, where an employee has a second employment where pension contributions are not paid, the employee can be auto enrolled or opt into the scheme in respect of that second employment if they meet the eligibility requirements.
Employers and employees should be aware that when an employee has multiple jobs, NAERSA will take into account the combined earnings to determine eligibility for auto-enrolment and an employee will be enrolled for any job without existing pension coverage if the total earnings are over €20,000.
Takeaway and Considerations for Employers:
Employers, if they have not done so already, need to ensure that they meet their auto-enrolment obligations. Failure to do so will result in penalties and possible prosecution. Employers should consider:
* Review existing pension schemes – employers with existing pension schemes in place should ensure that their existing scheme qualifies for exemption. Employers should bear in mind that any employees who are not part of an existing pension scheme will be auto-enrolled if they meet the eligibility criteria.
* Updating payroll software – employers should update their payroll software and should ensure that it can take instructions for enrolment, calculate and pay employer and employee contributions to NAERSA.
* Budgeting for contributions – contributions will commence in January 2026, with an incremental increase over the next ten years, employers should ensure that they have budgeted appropriately.
* Clear communications with employees – employers will be obliged to inform employees when they are first enrolled. Employers are also reminded that it is an offence to take any action that hinders or attempts to hinder an employee from participating in the MyFutureFund scheme. The employer portal contains sample correspondence that employers can use to issue to employees.
* Employer Portal is now open – As of 1st December 2025,the MyFutureFund employer portal is open and employers must:
1. Complete their profile on the MyFutureFund Portal before the end of December.
2. Set up a payment method.
3. Run payroll as usual.
4. Employers should also keep an eye out for NAERSA notifications and communications via the portal.
Links – MyFutureFund Portal
* Auto-Enrolment Retirement Savings System for Employers – Department of Social Protection
Authors- Ethna Dillon, Jenny Wakely
Anne O’Connell Solicitors
19-22 Lower Baggot Street
Dublin 2.
www.aocsolicitors.ie