Updated briefing following publication of the Automatic Enrolment Retirement Savings System Bill 2024

Our previous briefing examined the main features of auto-enrolment as broadly outlined in the General Scheme of the Automatic Enrolment Retirement Savings System Bill 2022, and outlined key considerations for employers operating in the private sector.

On Friday 5 April, Minister Heather Humphreys announced the publication of the much-anticipated legislation that will implement the new system, the Automatic Enrolment Retirement Savings System Bill 2024 (the “2024 Bill”). The 2024 Bill was approved by the Cabinet on 27 March 2024 and according to Minister Humphreys, “will provide the foundation for the most radical shake up of the pensions landscape in Ireland for generations.” Implementation of the new system is now targeted for 1 January 2025, with a gradual phasing-in of increasing contribution rates over the next ten years. In advance of the 2024 Bill’s publication, the Department of Social Protection updated its Auto-Enrolment FAQs, which address queries around the operational aspects of the system. 

The 2024 Bill incorporates the previously publicised features of the auto-enrolment system and reflects industry expectations in this regard. Confirmation that had been provided by the Department of Social Protection in relation to prospective minimum standards for existing occupational pension schemes is captured in section 52 of the 2024 Bill, which provides for the future implementation of such minimum standards in conjunction with the Pensions Authority. The aim of this provision is to ensure that employees in existing pension schemes will not be in a worse off position than were they enrolled in the AE scheme. In terms of timing, this is not of immediate or imminent concern as the legislation stipulates that implementation of any minimum standards will not occur until years 7-9 of the phasing-in process.

The 2024 Bill also provides for the establishment of a new State body, the National Automatic Enrolment Retirement Savings Authority (the “AE Authority”). The role of the AE Authority will be to administer the scheme and to "act in the best interests of members, collect contributions, arrange for the investment of contributions, manage participant accounts that will be accessible through an online portal, and facilitate the payment of savings at retirement."