Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for asking this question. The programme for Government commits to introducing a pensions automatic enrolment system. The objective of this commitment is to increase the proportion of employees in Ireland with supplementary pension cover, which includes both occupational and personal pensions.

According to figures from the Central Statistics Office, CSO, the rate of supplementary pension coverage is around 56% of the working population. This is based on the Pension Coverage Survey 2021. It is estimated that this figure reduces to less than 35% when the private sector is considered in isolation. As a consequence of this low supplementary pension coverage rate, many retirees may suffer an unwanted reduction in living standards when they retire.

The Government, recognising the exceptional strain that both employers and employees are under as a result of the Covid-19 emergency, will seek to gradually deliver an automatic enrolment system. This will be based on the following principles: there will be a phased roll-out over a decade of the contributions made by workers and employers; matching contributions will be made by both workers and employers and the State will top up those contributions; there will be an opt-out provision for those who choose to opt out; workers will have a range of retirement savings products to choose from; and there will be a charges cap imposed on pension providers.

My Department has finalised a proposal on the overall design of the auto-enrolment system and I intend to bring that to Government for formal approval very soon.

Once the final design is agreed it is intended that the necessary legislative organisation and process structures for implementation will follow over the course of this year and next, as set out in the economic recovery plan for 2021. I hope that I have clarified the matter for the Deputy.



Deputy Bernard J. Durkan:From the interest shown to date by the employers and employees, is the Minister satisfied that adequate progress is being made, that sufficient interest is being generated and that the scheme will meet its anticipated targets in due course?

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