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:
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:
Links – MyFutureFund Portal
Authors- Ethna Dillon, Jenny Wakely
Anne O’Connell Solicitors
19-22 Lower Baggot Street
Dublin 2.
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