Pension auto-enrolment delay disappoints
by Róisín McKane
 
Fórsa official Billy Hannigan said he was disappointed but not surprised by the delay.
Fórsa official Billy Hannigan said he was disappointed but not surprised by the delay.

The rollout of the auto-enrolment pension scheme is set to be delayed by at least a year due to the ongoing Covid-19 pandemic, Fórsa has learned.

 

When implemented, the scheme will see employees automatically enrolled into an occupational pension scheme, and receive contributions from both the State and their employer to help them save for retirement.

 

The scheme has long been seen as an essential tool in ensuring people have enough to live on in retirement. First mooted as far back as 2006, it’s been a long time in the planning, and now looks to be facing further delays.

 

Briefing notes obtained from the Department of Social Protection reveal that the Government now favours a gradual introduction of the scheme.

 

Approximately 65% of private sector employees are entirely dependant on the State pension once they retire. Two of the biggest sectors set to benefit from the new scheme are hospitality and retail, both of which have been decimated by the pandemic.

 

The Department has indicated that rollout of the scheme is not feasible at present given the particular strain it would put on employers. 

 

Fórsa official Billy Hannigan said he was disappointed but not surprised by the delay. “Employees and employers are under enormous financial strain at this time. While understandable, it’s important to note that this issue will not go away and will need to be addressed at some stage,” he said.

 

Earlier this week the Pensions Commission launched a public consultation process on the future of state pensions in Ireland. The Commission is tasked with looking at ways to ensure the sustainability of state pensions and the social insurance fund into the future. Preparation on Fórsa’s submission is underway.

 

“Without auto-enrolment, supporting future retirees will continue to be a challenge,” Billy said.

 

For more information on auto-enrolment click HERE. 

 

For more information on the Pensions Commission click HERE

 

It’s never been more important – or easier – to get the protections and benefits of union membership. Join Fórsa HERE or contact us HERE. 

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