The Government has finally approved the details of the new scheme. It is estimated that 750,000 workers aged between 26 and 60 will be impacted once introduced.
Workers who are not already in an occupational pension scheme will be automatically enrolled in a pension plan co-funded by their Employer and the State. However, they will have the choice to opt out if they so wish.
Every €1 contributed by the worker to the pension scheme will be matched by the Employer, and the State will contribute €1 for every €3 saved by the worker.
It is expected that the contribution rates will be phased in over several years:
| Employee | Employer | State | |
|---|---|---|---|
| Years 1 – 3 | 1.50% | 1.50% | 0.50% |
| Years 4 – 6 | 3% | 3% | 1% |
| Years 7 – 9 | 4.50% | 4.50% | 1.50% |
| Years 10+ | 6% | 6% | 2% |
Workers will have a choice of four different types of retirement funds to invest in, each with varying risk profiles.
The Bill will now go before the Oireachtas Committee on Social Protection for Pre-Legislative Scrutiny ahead of its expected introduction in early 2024.
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