Willie O'Dea (Limerick City, Fianna Fail)
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2042. To ask the Minister for Social Protection further to parliamentary question number 149 of 25 May 2017, the estimated cost of designing and implementing an auto enrolment pension system; and if she will make a statement on the matter. [27998/17]

Regina Doherty (Meath East, Fine Gael)
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As outlined in my response to parliamentary question number 149 of 25 May 2017, it is my intention to publish and commence the implementation of an Action Plan for the reform of pensions over the coming months. To address low supplementary pension coverage rates, in addition to a range of other long term reform measures, this Action Plan will detail proposals to transition from the current and purely voluntary system to one which will automatically enrol eligible employees into a quality assured retirement savings system from which the individual can opt out should they so wish.

Following publication of this Action Plan, I intend that the detailed evidence building and consultation required to deliver an automatic enrolment system will be undertaken over an initial project planning phase. This will include an investigation of the potential models for delivery and consideration of the costs involved. This information will be used to inform Government in selecting any preferred automatic enrolment operational structure and organisational governance. Decisions around main design parameters such as target membership, minimum contribution rates, financial incentives etc. will also impact on expenditure requirements. Correctly positioning/designing each of these parameters will be fundamental to the success of any system.

Until this work is undertaken during the initial project planning phase and a preferred model chosen, it would not be possible or appropriate to assess the costs of designing and implementing automatic enrolment.

I hope this clarifies the matter for the Deputy.