Thomas Pringle (Donegal, Independent)
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15. To ask the Minister for Public Expenditure and Reform the role his Department will have in approving an automatic enrolment pension system; the overall cost to the State of the scheme; and if he will make a statement on the matter. [22111/23]

Catherine Connolly (Galway West, Independent)
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31. To ask the Minister for Public Expenditure and Reform if he will clarify the role his Department will have in approving an automatic enrolment pension system; the expected overall cost to the State of the scheme; the details of the engagement his Department has had with the Department of Social Protection in this regard; and if he will make a statement on the matter. [22155/23]

Patrick O'Donovan (Limerick County, Fine Gael)
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I propose to take Questions Nos. 15 and 31 together.

Auto-Enrolment is a Programme For Government commitment and a key priority for Minister Humphreys and the Government. In March 2022, Government approved the design of AE and implementation of the AE system is underway. Under AE, employees will have access to a workplace retirement savings scheme, co-funded by their employer and the State. For every €3 a worker pays into it, they'll have another €4 credited to their account, and the contributions will all then be invested.

A significant work programme to give effect to this Government decision is currently underway within the Department of Social Protection, involving legislative, IT, communications, and staffing/organisation components. This work includes detailed and ongoing consideration of the resources required to operate the system, including the costings and financing of the Central Processing Authority that will be established to operate the AE system.

Responsibility for the development of the policy and implementation of the Automatic Enrolment Pension System is a matter, in the first instance, for my colleague, the Minister for Social Protection. As proposals around this policy matter are developed, the Minister for Social Protection will bring them to Government for consideration and approval.

When a clearer view of the costs involved is known the Department of Social Protection will engage with the Department in the normal way as part of the annual Estimates process to determine the annual provision made to fund the AutoEnrolment Pensions System. As a matter of principle, the sanction of the Minister for Public Expenditure, NDP Delivery and Reform is required for all expenditure. Neither the voting of money by Dáil Éireann, nor the inclusion of an allocation in an Estimate constitutes sanction. Approval of a proposal by the Government does not absolve the promoting Department from the need to obtain the specific sanction of the Minister for Public Expenditure, NDP Delivery and Reform. It is a matter for the Minister for Social Protection to calculate these costs and the Minister for Public Expenditure, NDP Delivery and Reform looks forward to discussing this key consideration with her when that work is complete.

My Department has participated in the Senior Officials Group on Pensions and the former Minister has attended the Cabinet Committee on the Economy and Investment at which these matters were considered. In addition, the Department engages with the proposals as they are referred to Government. Engagement with the Department of Social Protection will be continued throughout the detailed design and development of the Auto-Enrolment Scheme, particularly around those matters that may give rise to a cost for the Exchequer.