Michael Creed (Cork North West, Fine Gael)
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32. To ask the Minister for Employment Affairs and Social Protection the number of persons she expects will be covered by the auto-enrolment pension plan for workers in the private sector; the level of financial contribution which these workers will be expected to pay annually; and if she will make a statement on the matter. [5110/22]

Richard Bruton (Dublin Bay North, Fine Gael)
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68. To ask the Minister for Employment Affairs and Social Protection the projections for the annual collection of funds under an auto-enrolment pension scheme; and if it is proposed to deploy these funds for specific purposes or manage them in a particular way. [5361/22]

Joe Flaherty (Longford-Westmeath, Fianna Fail)
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96. To ask the Minister for Employment Affairs and Social Protection the status of the implementation of pension auto-enrolment; and if she will make a statement on the matter. [5394/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 32, 68 and 96 together.

The Programme for Government commits to introducing a pensions automatic enrolment (AE) system. The objective of this commitment is to address the low proportion of employees in Ireland with supplementary pension cover, which includes both occupational and personal pensions.

According to CSO figures, the rate of supplementary pension coverage is around 56% of the working population (Pension Coverage Survey 2021). It is estimated that this reduces to less than 35% when the private sector is considered in isolation. As a consequence of this low supplementary pension coverage rate, many retirees may suffer an unwanted reduction in living standards when they retire.

This Government, recognising the exceptional strain that both employers and employees are under as a result of the COVID-19 emergency, will seek to gradually deliver an AE system based on the following principles:

- There will be a phased roll-out, over a decade, of the contributions made by workers and employers.

- Matching contributions will be made by both workers and employers and the State will top up those contributions.

- There will be an opt-out provision for those who choose to opt out.

- Workers will have a range of retirement savings products to choose from.

- There will be a charges cap imposed on pension providers.

My Department is currently finalising a proposal for Government on the overall design of the AE system and I intend to bring that to Government for consideration in the near future. If that proposal is approved I will be publishing the design in detail and it will include, amongst many other things, the level of contributions to be made by all involved and over what timeframe, the types of investment approaches that will be available, and the likely numbers of people who will be encompassed by the programme.

Once the final design is agreed it is intended that the necessary legislative, organisational and process structures for its implementation will follow over the course of this year and next, as set out in the Economic Recovery Plan 2021.

I hope this clarifies the matter for the Deputies.