What is auto-enrolment?
Auto-enrolment is a new retirement savings system for employees that will be introduced by legislation in 2024. The purpose of the legislation is to ensure that people currently without a pension will have their state pension topped up to ensure they will stay above the poverty line in retirement.
The new pension contributions will be phased in so that everyone can get used to the new system without a steep change in income.
What auto-enrolment pensions means for employers
How much it will cost
Steps to consider
Familiarise yourself with the legislation: Review the auto-enrolment legislation applicable to Ireland to understand the requirements, deadlines, and specific provisions.
Pension Provider: It is crucial to select a pension provider that can facilitate auto-enrolment for your employees. It might be worth consulting with your current provider or if you do not have one in place - select a qualifying pension scheme.
Assess workforce eligibility: Determine which employees will be eligible for auto-enrolment. This may involve considering factors such as age, earnings, and length of service.
Set up employee opt-out procedures: Establish procedures and guidelines for employees who wish to opt out of the auto-enrolment scheme. This should include providing the necessary opt-out forms and ensuring compliance with legal requirements.
Train staff: Educate relevant personnel within the organisation, such as HR staff and payroll administrators, on the auto-enrolment process, employee communication, and handling opt-outs.
Communicate with Employees & update policies:
It is expected that additional guidance will be available for employers regarding the governance of auto-enrolment later this year once the legislation is introduced. It may be worth awaiting further guidelines before actioning some of the steps above.
The experienced team at MSS as aways are available to answer any question and provide support.