Martin Browne (Tipperary, Sinn Fein) | Oireachtas source

We are living in an ageing society, and it is important we get auto-enrolment right. It is important to provide a financial vehicle to help people to supplement the State pension to enable them greater financial security in retirement, so we must get it right. It is to reward workers and improve their lives post retirement.

I refer to the mandatory nature of the automatic opt-in for six months. As devised, this Bill gives little recognition to the challenges faced by people on lower incomes, especially when the high cost of living gives those workers little room to manoeuvre financially. We have to recognise what this means for people on around €20,000 a year. If this Bill were to take effect, it would result in a deduction from their pay of €5.76 a week, so they would be left with no choice but to bear a deduction in their incomes of between €20 to €30 a month for six months before they could opt out, regardless of whether they could afford it. For families living from paycheck to paycheck and at the pin of their collars to make ends meet, this fails to recognise their situation and forces this deduction on them for six months without giving them the autonomy to make their own decisions. People know what is best for them in their individual situations, and it is not for the Government to dictate that they should be locked in for six months. People should be auto-enrolled but they should also be able to leave if they want with as little delay or hassle as possible.

The Bill does not provide for the payment of a State incentive during periods of maternity leave or for a mechanism to make additional voluntary contributions by partners. While I note this may be facilitated once the system is bedded in, we are being asked to act on blind faith. Credits are also not provided during caring, which needs addressing.

Finally, the way the fund would be managed is troubling. For years we have laid out our opposition to private pension providers being responsible for this investment. Back in 2018, we advocated for the NTMA being central to managing these funds for the benefit of citizens and to prioritise their financial well-being rather than gifting this to private pension providers, which ultimately have a different set of priorities. I support the introduction of auto-enrolment but not as set out here. It is too important to take any chances with, and I feel that, as it is currently set out, the risk is too great.

See this speech in context