Louise O'Reilly (Dublin Fingal West, Sinn Fein)
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10. To ask the Minister for Employment Affairs and Social Protection if the required additional funding has been provided to social welfare branch managers to pay for pension auto enrolment costs imposed from 1 January 2026 and if he will make a statement on the matter. [31208/26]

Louise O'Reilly (Dublin Fingal West, Sinn Fein)
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Industrial relations are a bit like the song "Hotel California", in that, apparently, I was able to check out but, unfortunately, was unable to leave. This industrial relations dispute concerns branch managers of social welfare offices. The Minister will be aware of the dispute. He will also be aware of the requirement by the Department that branch managers participate in auto enrolment but if it is not funded, how are they going to be able to do that?

Dara Calleary (Mayo, Fianna Fail)
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I am certainly very aware of the situation and very much acknowledge the work of our branch managers around the country in the delivery of our services. The introduction of auto enrolment in January 26 2026 sought to address the employee pension coverage gap that exists in Ireland in order to provide all employees with greater comfort and security regarding their retirement income. As the Deputy knows, each social welfare branch office is operated and managed under a contract for service by our branch managers. As independent contractors, branch managers do very significant work on a commercial contract for service that is subject to public procurement rules. As is standard in commercial agreements, each branch manager is expected to meet operating costs from within the agreed pricing.

Auto enrolment obligations involving 1.5% of payroll costs now apply across the economy and with the exception of those community and voluntary organisations paid on a cost-recovery basis via grants, it is not appropriate for the Department to unilaterally approve changes to pricing arrangements to fund auto enrolments costs under commercial contracts such as those in place. However, we have received a request for review the overall remuneration arrangements for branch managers. We are engaging at the moment with the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation and will be in a position to revert to branch managers in the coming days with an update. I am hopeful that we can finalise revised terms very shortly. I am very conscious of their work, the contribution they make and the presence they give the Department around the country.

Louise O'Reilly (Dublin Fingal West, Sinn Fein)
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I might do the lotto on my way home because apparently I have incredible powers of prediction. I literally told the Minister this was going to happen. I said that if the Minister did not provide funding for people and if he put in an obligation regarding auto enrolment, particularly on organisations and entities that do not have access to any revenue-raising powers, this would happen.

These people cannot raise revenue; they are not in a position to do that. They are entirely dependent on the State and the Minister knows that. He put the obligation for the auto enrolment on them. They want to be part of the auto enrolment scheme but my information is the Minister's Department is refusing to go to arbitration with them. That is very much a backwards step. We know we have the Kevin Duffy recommendation, which was accepted by both sides, but the individual branch managers want to be in a financial position to discharge their obligations. They have no capacity to raise the revenue, the Minister knows that, and the obligation is on his Department.

I welcome that there is news in the coming days and I would welcome it even more in the Minister's next contribution if he advised me this is going to be good news for the branch managers and news that will allow them to discharge their obligations for auto enrolment and stay within their budgetary guidelines.

Dara Calleary (Mayo, Fianna Fail)
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I can assure the Deputy there has been a lot of engagement from my Department's branch office support unit with both branch manager associations. Over the course of 2025, both associations expressed their intentions to seek a request for the review of the remuneration package. The representative group of branch managers submitted its formal request and case to the Department in May and the branch manager association did so in August. They all reflected not just auto enrolment but also the operational challenges of the branch office network, other costs that have increased and the cost of living.

We have been engaging with the Department of public expenditure on that and in respect of our responsibilities to engage with that Department around that. I acknowledge the frustrations with the time it has taken but we have to engage with that Department regarding this space, and we are nearly there. I wish the Deputy well in the lotto, also.