PENSIONS: AUTO ENROLMENT
The long-awaited Automatic Enrolment Retirement Savings System
Act 2024 has been signed into law by the President. This Act will
impact every business in the country which has employees. The Act
provides for a new retirement savings scheme for workers who are
not already members of a pension scheme. It aims to increase
pension coverage and overall pension adequacy in Ireland. A
commencement order is required before the Act can come into effect.
The Government has indicated that it expects first enrolments to
happen in 2025.
Employers should begin preparing for auto enrolment. The main
initial step is to undertake a gap analysis of the workforce to see
who is covered by a pension arrangement and who is not. Employers
then need to decide whether they want (i) to include all employees
in their occupational pension scheme, (ii) the AE system to apply
to all employees, or (iii) to operate both systems in tandem for
different cohorts of
