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Government announces pensions auto-enrolment plan

21 Apr 2022 / corporate law Print

Government announces pensions auto-enrolment

Mason Hayes & Curran (MH&C) has commended the Government for its announcement on pension auto-enrolment of Irish workers from late 2023, with the goal of bridging the gap between living standards before and after retirement.

In Ireland, just 56% of those in employment have an active supplementary pension, and just 35% of workers in the private sector have pension coverage.

Eligible population

The scheme will impact around 750,000 workers aged between 23 and 60 and who are earning over €20,000 a year. It will see employers automatically enrolling employees into a pension scheme to which they would be obliged to contribute.

Employers will make 100% matching contributions, and the State will match 33% of the employee’s contribution.

State top-up

The access that members will have to their pensions fund will be limited to the current State pension arrangement, which is from 66 years.

“The Government is to be commended for setting a timeline and announcing the scheme’s key features. It is clearly hoped that auto-enrolment will provide a solution to the lethargy many people feel around setting up a pension, as well as alleviating some of the pressure that will be faced by the exchequer in years to come.”

MH&C on awards shortlist

Meanwhile MH&C has been shortlisted for the European Pensions Law Firm of the Year award at the European Pensions Awards 2022. 

The awards give recognition to the investment firms, consultancies and pension providers across Europe that have set the professional standards in order to best serve European pension funds over the past year.

The winners will be announced at a ceremony in the London Marriott Hotel in Grosvenor Square on 7 July.

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