Written answers
Wednesday, 22 January 2025
Department of Employment Affairs and Social Protection
Community Employment Schemes
Maurice Quinlivan (Limerick City, Sinn Fein)
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861. To ask the Minister for Employment Affairs and Social Protection if Community Employment participants who earn over €20,000 per year due to dependent status are to be included the new auto-enrolment scheme; and if she will make a statement on the matter. [46769/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The aim of introducing auto-enrolment is to address the pension coverage gap that exists in Ireland, and to help provide for better retirement incomes for workers. The legislation to underpin this new savings system was enacted in July 2024 and a Statutory Instrument (S.I. No. 500 of 2024) was signed by the Minister which provides for the commencement of the system from the 30th of September 2025.
The new system will be called 'My Future Fund'. It will automatically enroll all employees, aged between 23 and 60 years of age, who are earning €20,000 or above a year (across all employments), and who are not actively contributing to a supplementary pension scheme.
Those who fall outside the age and earnings threshold – in other words, those aged between 18 and 22 or between 60 and 66, or who earn below €20,000, will be able to join the new retirement savings system by voluntarily opting in if they wish to do so.
Earnings from Community Employment (CE) schemes will not be assessed for auto-enrolment. However, if a CE participant has another job where they are an employee, that income will be assessable for auto-enrolment and, if they meet the eligibility criteria, they will be automatically enrolled for that employment only. They may also opt-in in respect of that employment if they are otherwise outside the age and earnings threshold. In any event, no contributions will be calculated on the basis of earnings from a CE scheme.
I hope that this clarifies matters for the Deputy.
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