Catherine Connolly (Galway West, Independent)
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150. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 31 of 11 May 2023, if the discussions between his Department and the Department of Public Expenditure on the cost of administering the auto enrolment pensions system have taken place; if they have, the estimated cost to the exchequer of administering the scheme in 2025; the expected progression of that cost in 2026, in subsequent years and the number of years for which an exchequer subvention will be required to cover administration costs until the scheme is self-financing from charges on scheme members; and if he will make a statement on the matter. [27768/25]

Dara Calleary (Mayo, Fianna Fail)
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The Programme for Government contains a commitment to introduce the Automatic Enrolment (AE) Retirement Savings System. The legislative basis for implementing the new system was enacted last July. To be known by the brand name, 'My Future Fund', I recently announced it will commence from 1st January 2026.Discussions between my Department and the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation on the costings and method of financing the AE system are ongoing.One element of these costs is the State 'top-up'. Under the final design principles of the AE system and its governing legislation, the State will make a contribution to participants' retirement savings accounts at a rate of €1 for every €3 saved by the employee. In estimating the costs of the State contribution, it is assumed that 90% of participants will remain enrolled in the scheme. The full year cost of the State top-up is estimated to be €142 million in 2026. By Year 10, when the full contribution rates have been phased in, the full annual cost is estimated to be €794 million.With regard to the costs associated with the National Automatic Enrolment Retirement Savings Authority (NAERSA), which is the statutorily independent body being established to oversee and manage the AE system, it is intended that the Authority will quickly become self-financing from fees charged to the participants.In terms of current costs, a contract was signed on 9^th October 2024 with Tata Consultancy Services (TCS) for the provision of a managed service to administer the AE system on behalf of the Authority, which will cost in the region of €100 to €150 million over 10 to 15 years. The Authority itself is expected to be formally established in the coming weeks, with an active recruitment campaign ongoing. Annual staffing and corporate costs are expected to be in the region of €10 million per annum.Seed funding, to cover the Authority's costs arising in advance of contribution collection and during the early years of its establishment, will be needed. Under consideration by the two Departments is that the Authority may be financed from a loan or grant, in the region of €20-30 million, to be amortised over the following 10 to 15 years. Thereafter, it is expected that the Authority will be fully self-financing, requiring no funding from the Exchequer.I hope that this clarifies matters for the Deputy.