Verona Murphy (Wexford, Independent)
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538. To ask the Minister for Employment Affairs and Social Protection whether persons ineligible for the auto-enrolment retirement savings scheme due to be introduced in 2025 because they already pay into a company pension plan will miss out on company and Government contributions; and if she will make a statement on the matter. [43231/24]

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

Implementation of the AE system is now well underway, with the enactment of the Automatic Enrolment Retirement Savings System Act 2024 and the signing of a contract with Tata Consultancy Services (TCS) to administer the AE system on behalf of the National Automatic Enrolment Retirement Savings Authority (NAERSA). In addition, I recently signed a Commencement Order to put into effect the provisions of the AE Act. This provides for the establishment of NAERSA on 31st March 2025 and the commencement of enrolments and contribution collection on the 30th September 2025.

The AE system is designed to complement rather than replace existing retirement savings provision. Employees who are already enrolled in a qualifying occupational scheme, PRSA, trust RAC or a PEPP will be exempt from AE.

In respect of occupational or company pension schemes, Section 772(2)(d) of the Taxes Consolidation Act 1997 (TCA) provides that one of the conditions for approval of such a pension scheme is that the employer must contribute to it. In addition, the AE Act provides for the introduction of exemption standards to be developed in consultation with the Pensions Authority within the first six years of the introduction of AE. These standards will, in time, ensure that the employee's pension will be at least on a par with, or will exceed, what is provided for through AE in order to continue to be exempt.

AE will provide a direct State top-up contribution of €1 for every €3 the employee contributes, which is the equivalent of 25% tax relief. Individuals who currently contribute to an alternative pension scheme through payroll, and who will therefore be exempt from AE, already receive support from the State through the provision of tax relief of up to 40% on their contributions, depending on their income tax rate.

I hope that this clarifies matters for the Deputy.