Peter Fitzpatrick (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

74. To ask the Minister for Employment Affairs and Social Protection the status of the introduction of auto enrolment for pensions further to the publication of the Roadmap for Pensions Reform 2018-2023; and if she will make a statement on the matter. [38819/18]

Regina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Pensions reform is a Government priority and the plans to achieve this are set out in the Roadmap for Pensions Reform 2018-2023, which was published last February. Among the key commitments contained in this plan is to develop, by 2022, a new ‘Automatic Enrolment’ (AE) supplementary retirement savings system for employees without pensions coverage.

AE will see a transition from the current and purely voluntary supplementary pension system to one which will, subject to certain parameters, automatically enrol employees into a quality assured retirement savings system. This reform, where the saver will maintain the freedom of choice to opt-out, will encourage long term saving and asset accumulation amongst those who may otherwise suffer a reduction in living standards at retirement. It will increase the well-being, financial security and independence of future retirees.

In line with the actions contained in the Roadmap to achieve this ambitious commitment, a full time ‘Automatic Enrolment Programme Management Office’ (PMO) is now operational within the Department of Employment Affairs and Social Protection. The PMO is undertaking the work required to establish the evidence base which will inform future Government decisions regarding the design of the system. In addition, a new Interdepartmental ‘Automatic Enrolment Programme Board’ has also been established to provide strategic direction to the project and ensure that operational arrangements are in place to allow first enrolments no later than 2022.

Last month, I published a ‘Strawman’ proposal for an AE supplementary retirement savings system and commenced a public consultation process. The ‘Strawman’ proposal is a high level draft proposal designed to prompt and generate discussion and improve ideas. It should not, in any way, be construed as Government’s confirmation of what form AE will ultimately take. The goal of publishing the 'Strawman' is to help interested parties conceptualise plausible approaches to AE and to facilitate a focused debate around key design issues and how to address income adequacy for retirees in the future. My intention is to allow individuals and interest groups an opportunity to submit their views on the design and operational structure of the AE system.

The closing date for formal written submissions to the Strawman consultation process is the 4th November. In addition to this a number of AE member focus groups will be arranged; my Department is also holding a number of regional consultation fora in Dublin, Galway and Cork during October; and officials of my Department are holding a briefing session today for members of these Houses and their staff. Further details on the consultation process and how to engage with the public meetings are available on my Department’s website.

Whilst the consultation process on the AE Strawman proposal closes on November 4th, Government will continue to engage with all interested parties throughout the design and development process. This will be used to generate as much consensus as possible on the best way forward. Our goal is to make sure the final system design will trusted by employees and employers, will be affordable and will enhance personal independence during retirement.

I hope this clarifies the matter for the Deputy.