Ruairí Ó Murchú (Louth, Sinn Fein)
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129. To ask the Minister for Employment Affairs and Social Protection the means by which charities, not-for-profits and community organisations, who have paid employees and who are funded by multiple Government Departments and agencies, will be able to make financial provision for their workers for the pension auto enrolment scheme commencing in 2026; and if he will make a statement on the matter. [60222/25]

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 aim of introducing AE is to address the pension coverage gap that exists in Ireland and to provide workers with greater comfort and security regarding their retirement income. The new system - to be known as My Future Fund - will commence from 1 January 2026. The implementation of My Future Fund will pave the way for around 800,000 workers to be brought into a retirement savings scheme for the first time and I look forward to its implementation.

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 enactment of the AE Act in 2024. There has also been an extensive communications campaign to inform people that the scheme will commence on 1 January 2026. Therefore, employers have been given a substantial lead-in period to budget appropriately for its introduction, including through budget negotiation with a sponsor where appropriate.

It is also worth mentioning that the design of the AE system provides for phasing in of the contribution rates over a decade. Employees will be required to make initial contributions of 1.5% of gross earnings, rising by 1.5 percentage points every three years until it reaches a maximum contribution rate of 6% in Year 10. These contributions will be matched on a ‘one-for-one’ basis by employer contributions, and 'topped-up' by the State at a rate of €1 for every €3 the employee contributes. 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 over time.