The Automatic Enrolment Retirement Savings System Bill 2024 will, according to the Minister for Social Protection, “provide the foundation for the most radical shake up of the pensions landscape in Ireland for generations.” This bill will allow for approximately 800,000 workers between the ages of 23-60, who earn more than €20,000 a year, to be brought into a pension scheme for the first time.
Under the new system, which will be phased in over a ten-year period, employers will match employee contributions and will be topped up by the State. The initial pension contribution will be at a rate of 1.5% of the employee's gross earnings, and the rate will rise gradually every three years, reaching a maximum of 6% of the employee's gross earnings by 2034. The contributions will apply to earnings up to €80,000. An employee can continue to contribute if they earn in excess of €80,000 annually, but neither the employer nor the State will be required to match any contributions made on any income made over €80,000.
There will be an initial six-month mandatory participation
period.
After which, participants will be allowed to opt out or to suspend
their contributions. If the employee suspends contributions, the
employer and State contributions will also be suspended.
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