Joan Burton (Dublin West, Labour)

Increasing pensions coverage, particular among the lower paid and those with gaps in their employment, is a priority for the Government. The introduction of an auto-enrolment system is one of the best ways in which we can do this. An inter-departmental group, chaired by the Department of Social Protection, is developing the legislative, regulatory and administrative infrastructure required to introduce a number of pension reforms in the national pensions framework, including auto-enrolment.

It is envisaged at this stage that contributions for an auto-enrolment system will be collected through the PRSI system. In developing the various aspects of the system, we will consider the costs and benefits associated with the options available.

There will be a limited number and limited types of funds available under the scheme. The Government will decide how these participating investment funds will be selected and managed. It is expected that a competitive process will be run by the State which will also ensure that charges are kept to a minimum. The competitive process will not necessarily be confined to the private sector. It could include State organisations such as the NTMA. No decision has been made as yet.

It is intended that the auto-enrolment scheme will be introduced in 2014, but only if it would be prudent given the economic conditions prevailing at that time.

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