Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

84. To ask the Minister for Employment Affairs and Social Protection the consultations that have taken place on the proposed auto enrolment; and if she will make a statement on the matter. [38769/18]

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 too high a reduction in living standards at retirement. It will increase the well-being, financial security and independence of future retirees.

Thus far, consultations have taken place to utilise expertise and facilitate input from, and engagement with, the various sectorial interests including those from the pensions industry, representatives of small, large and multinational employers, trade unions and consumer/advocate group representatives. This involved issuing a briefing document and an ‘Invitation for Submissions’ to approximately 35 industry/employer/trade union/consumer/advocate representative groups. All groups were afforded the opportunity for a follow on meeting to expand further on views advanced in written submissions.

Consultations have also taken place with a range of international/Irish subject matter experts to inform the deliberative process. This includes experts from Australia, New Zealand, Canada, the United Kingdom, the United States and the OECD.

Using the learning achieved from this work, last month, I published a ‘Strawman’ proposal for an AE supplementary retirement savings system and commenced a wider national public consultation process. The ‘Strawman’ proposal is a high level draft proposal designed to prompt and generate discussion and improve ideas. It should not 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.

The closing date for formal written submissions to the Strawman consultation process is the 4th November. In addition, a number of other measures are being arranged including a briefing for Oireachtas members - which is being held today; dedicated ‘AE member Focus Groups’; and regional public consultation fora in Dublin, Galway and Cork during the month of October. Further details on these and how to register attendance at the public meetings are available on the 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 as to 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.