Willie O'Dea (Limerick City, Fianna Fail)
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201. To ask the Minister for Employment Affairs and Social Protection if her plans for auto-enrolment will include an early drawdown option for a mortgage deposit; and if she will make a statement on the matter. [45597/19]

Regina Doherty (Meath East, Fine Gael)
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I am pleased that the Government recently approved significant elements of my design for an automatic enrolment retirement savings system. These include key decisions in relation to the target membership, the contribution rates, the policies in relation to opting-out and re-enrolment, the administrative arrangements and organisational approach and the investment options.

As stated in the 'The Roadmap for Pensions Reform', the Government proposes to begin implementation of a supplementary retirement savings system, known as Automatic Enrolment (AE), by 2022. AE will see a transition from the current and purely voluntary system to one which will, subject to certain parameters, automatically enrol employees into a quality assured retirement savings system. The saver will maintain the freedom of choice to opt-out.

In relation to an early drawdown option for a mortgage deposit, while such an approach may appear reasonable and improve the attractiveness of AE for some people, the core policy objective of AE is to ensure adequate retirement savings. Therefore, facilitating early access to pension savings could potentially compromise overall retirement adequacy. In this regard, it is worth bearing in mind that early access to pension funds for house deposits or for other similar reasons is not currently possible for those with existing supplementary pensions in Ireland.

Given that allowing people to access their pensions early is contrary to achieving the policy goal of pension adequacy, the Government has decided that a limited number of ‘Savings Suspension periods’ will be facilitated in the AE system for members who wish to temporarily cease making contributions. These savings suspension periods could be used when a person wishes to save for a house deposit, for instance. In such cases, employer and State contributions will also cease.

I hope this clarifies the matter for the Deputy.

Willie O'Dea (Limerick City, Fianna Fail)
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202. To ask the Minister for Employment Affairs and Social Protection the timeline and target dates for delivery in order to ensure that an auto-enrolment pension system will be in place by 2022; and if she will make a statement on the matter. [45598/19]

Willie O'Dea (Limerick City, Fianna Fail)
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203. To ask the Minister for Employment Affairs and Social Protection the resources, financial and otherwise, that have been allocated to ensure that an auto-enrolment pension system is in place by 2022; and if she will make a statement on the matter. [45599/19]

Noel Grealish (Galway West, Independent)
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211. To ask the Minister for Employment Affairs and Social Protection if there is a draft or other budget for establishing the proposed central processing agency for auto-enrolment; the person of body who will be responsible for overruns of the proposed budget; and if she will make a statement on the matter. [45755/19]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 202, 203 and 211 together.

I am pleased that the Government recently approved significant elements of my design for an automatic enrolment retirement savings system. These include key decisions in relation to the target membership, the contribution rates, the policies in relation to opting-out and re-enrolment, the administrative arrangements and organisational approach and the investment options.

As stated in the 'The Roadmap for Pensions Reform', the Government proposes to begin implementation of a supplementary retirement savings system, known as Automatic Enrolment (AE), by 2022. AE will see a transition from the current and purely voluntary system to one which will, subject to certain parameters, automatically enrol employees into a quality assured retirement savings system. The saver will maintain the freedom of choice to opt-out.

There are five main areas where work is on-going so as to produce design options for Government to consider. These areas relate to: the scope and role of the Central Processing Authority; the design of the State financial incentive; the nature and functions of the Registered Providers; the investment framework and funds to be offered by Registered Providers, including the design of the default fund, and also the pay-out phase; and the phasing of implementation.

In relation to the operational arrangements of the CPA, the Department of Employment Affairs and Social Protection was successful in obtaining technical support from the EU-Structural Reform Support Service (EU-SRSS). This European Commission service provides targeted support to member states implementing administrative and institutional reforms. In this regard, my officials are being assisted by the EU-SRSS in developing proposals on the design, scope, governance, and financing costs of the CPA, which will be prepared for Government before the end of the year. Thereafter, once the CPA design is selected and approved by Government, legislation will have to be drafted and enacted. The intention is that work on the legislation will commence in 2020.

With regard to the issue of a State financial incentive, while the issue of tax incentives within wider supplementary pensions is under the remit of the Department of Finance, the issue of financial incentives for private pensions formed part of the Interdepartmental Pensions Reform and Taxation Groups (IDPRTG) Consultation on Supplementary Pensions Reform. On the basis of the findings from this review, the responses to the Strawman consultation, and ongoing research and consultation with experts from around the world, a set of options on the design of a State incentive for AE will be brought to Government in the first quarter 2020.

In relation to the nature and functions of the Registered Providers, the wider investment framework for AE and the pay-out phase, a set of proposals on these will also be submitted to Government for its consideration in the first quarter of 2020.

In terms of the resources allocated to achieve this commitment, a full time ‘Automatic Enrolment Programme Management Office’ (PMO) has been established within my Department. In addition, an Inter-departmental ‘Automatic Enrolment Programme Board’ has been set up to provide the strategic direction for the development of the AE system. Furthermore, as the AE system is implemented, additional resources will be put in place as and when required and appropriate.

I hope this clarifies matters for the Deputies.