Movement on pension enrolment expected
by Mark Corcoran
 
Union official Billy Hannigan welcomed the minister’s remarks, but said there are now no longer any excuses for a delay in the implementation.
Union official Billy Hannigan welcomed the minister’s remarks, but said there are now no longer any excuses for a delay in the implementation.

Social protection minister Heather Humphreys has indicated that final proposals for an auto-enrolment pension scheme will go before Government in the coming weeks. Speaking at a press conference this week, she said she aimed to have scheme in place by the end of 2023, though she admitted that “a good deal of work” remains to be done.

 

Auto-enrolment aims to increase the number of people who have occupational pensions by making it compulsory to join a scheme based on contributions from the worker, the State and the employer.

 

The Irish scheme was originally meant to be in place at the start of next year, but the commencement date has been put back.

 

Fórsa and other unions have repeatedly called for the quick implementation of longstanding plans for auto-enrolment as most people who do not have a pension have indicated that the State pension would be their main source of income on retirement.

 

Union official Billy Hannigan welcomed the minister’s remarks, but said there are now no longer any excuses for a delay in the implementation.

 

“It’s crucial that workers start paying into their pension as early as possible to achieve an adequate source of income once they retire. The auto-enrolment scheme ensures workers will achieve a decent standard of living once they retire.

 

“It is unfortunate that the original deadline of the start of 2023 was shelved due to the pressures associated with Covid-19. However, in the current situation we find ourselves in the Government must find a way to ensure there are no further delays and that the 2023 deadline is met.”

 

A recent Independent Trustee Company survey of pension advisers found 56% believe there will be a delay of one or two years, while a further 38% said auto-enrolment would simply not happen.

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