Mark Ward (Dublin Mid West, Sinn Fein)
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275. To ask the Minister for Employment Affairs and Social Protection the provisions in place for community and voluntary organisations to support them financially when the auto-enrolment into pensions comes into effect; and if she will make a statement on the matter. [27871/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The introduction of an automatic enrolment retirement savings system is a Programme for Government commitment and a key priority for me as Minister for Social Protection.

Implementation of the AE system has been gathering pace, with the intention to commence the scheme in early 2025. Its implementation will represent the single biggest reform of the pension system in the history of the State.

Employees who are not already in an occupational pension scheme or an equivalent pension savings scheme like a PRSA, and who are aged between 23 and 60 years old, and earning over €20,000 across all of their employments, will be automatically enrolled. Employee contributions will be matched by employer contributions and topped up by the State.

My Department has been engaging with employers, including those in the community and voluntary sector, since the release of the AE 'strawman' public consultation in 2018. Its impending implementation has also been well flagged since the publication of the Programme for Government in 2020. Employers have been given a substantial lead-in period to budget appropriately for its introduction, including through budget negotiation with a sponsor where appropriate.

Finally, it is worth mentioning that the design of the AE system provides for phasing in of the contribution rates over a decade, starting at a very low 1.5% of gross earnings for the first three years. For community and voluntary organisations (and employers more generally), this approach gives very clear certainty as to the rates that will be applicable so as to facilitate the gradual absorption of these labour costs.

I hope this clarifies matters for the Deputy.