Minister Humphreys signs commencement order for launch of Auto Enrolment Retirement Savings System on 30th September 2025
- Published on: 10 October 2024
- Last updated on: 18 October 2024
- Auto Enrolment system to be called “My Future Fund”
- “My Future Fund”, will help hundreds of thousands of hard-working people save for their futures with the support of employers and the State
- National Automatic Enrolment Retirement Savings Authority (NAERSA) to be established with effect from 31st March 2025
- Procurement of investment managers to commence shortly
- Minister Humphreys: “Auto Enrolment is the single most significant reform of the pensions landscape in Ireland since the introduction of the State Pension in 1908”
The Minister for Social Protection, Heather Humphreys TD, has signed the commencement order which will see the first enrolments under the Auto Enrolment Retirement Saving System begin on 30th September 2025.
The Minister has also secured Government approval for the establishment of the National Automatic Enrolment Retirement Savings Authority (NAERSA) on the 31st March 2025. This will ensure the Board and Executive Management of NAERSA has 6 months to oversee the implementation of the various arrangements and systems ahead of the Auto Enrolment system going live on 30th September 2025. The Department of Social Protection will now begin work to recruit personnel for both Board and staff positions.
On 30th September 2025, the National Automatic Enrolment Retirement Savings Authority (NAERSA) will begin collecting contributions from employees, their employers and the State, and investing that money on the employees’ behalf.
Commenting on the start date of 30th September 2025, Minister Humphreys said:
“Setting a start date a year from now gives all stakeholders involved including employees, their employers, payroll developers and providers, time to make the necessary preparations and adjustments to their systems and their processes to facilitate the implementation of Auto Enrolment and to budget accordingly.”
The new, easy-to-remember name for the Auto Enrolment system will be “My Future Fund”. The name reflects the purpose of the scheme – to save and invest for the future – while highlighting that these savings will be the personal property of the participants.
Minister Humphreys said:
“My Future Fund, the new name for auto-enrolment, will help hundreds of thousands of hard-working people save for their futures with the support of employers and the State. By ensuring people have more money when they retire, we are investing in the future of Ireland and in the people living and working here.”
The contract has now been signed with Tata Consultancy Services (TCS) to act as the managed service provider for My Future Fund. TCS already employs 1,400 people across Ireland and has a Global Delivery Centre based in Letterkenny, Co. Donegal. TCS will provide the administration services to NAERSA. TCS is a highly experienced, global leader in IT services, consulting and business solutions and has successfully administered similar schemes in other countries, including the UK where it administers the NEST Auto Enrolment system.
Minister Humphreys continued:
“I am pleased to welcome TCS on board as the managed service provider for My Future Fund. TCS has a wealth of relevant experience, having provided similar services in other countries. My officials and I will be working hard alongside TCS, the Revenue Commissioners and payroll software developers to make sure that My Future Fund is delivered on time and to the highest standard.”
Deepak Chaudhari, Country Head of TCS Ireland, said:
“This partnership is a fantastic opportunity for TCS Ireland to apply its deep contextual knowledge, innovation and to contribute to a project of national importance that will have a lasting impact. It is an exciting time for our talented team, as this initiative not only expands our capabilities but also brings significant job creation to Donegal; further strengthening our commitment to the region and to driving meaningful change in the pensions landscape.”
These approvals by Government, the signing of the contact with TCS and the signing of the commencement order by the Minister mean that ‘auto-enrolment’ will now become a reality for workers in Ireland in 2025.
The Department of Social Protection is today commencing a major communications campaign to inform people of the new system and what it will mean for them. This campaign will continue over the coming months and will cover all media channels, including social media, and numerous media formats. The Department will also shortly issue a tender for the procurement of investment managers to manage participants’ funds.
Minister Humphreys concluded:
“Auto Enrolment has been talked about for 30 years – in 2025 it will become a reality.
“This is going to mean 800,000 workers will have an occupational pension on top of their State pension.
“Ultimately it will mean people have more money and more comfort in their retirement – that’s good for the economy, good for businesses and good for our society.
“Auto Enrolment is the single most significant reform of the pensions landscape in Ireland since the introduction of the State Pension in 1908. In decades to come it will be seen as one of the lasting legacies of this Government.”
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The Department of Social Protection has also created a series of informational videos that explain auto-enrolment for both employers and employees. You can view the videos on the Department of Social Protection’s YouTube channel.
Notes
1. NAERSA will oversee the administration and regulation of the Auto Enrolment Scheme, now named My Future Fund. It will identify eligible employees to be enrolled and notify employers through an automated payroll instruction to pay a contribution amount at a set percentage rate. NAERSA will also manage opt-outs, opt-ins, suspensions, risk choices, and every other aspect of the system. Through this highly automated process, NAERSA will ensure that any administration required from businesses and employers will be kept to a minimum.
2. Once commenced, employers will match the amounts saved by workers and the State will top-up each participant’s pot by €1 for every €3 they contribute. Investment of those savings will likely see participants’ funds grow further.
3. To help employees and employers budget for auto-enrolment, contributions will be phased in over a decade. Employee and employer contributions will start at 1.5% in 2025, and will increase by 1.5% every three years until 6% is reached in 2034.
4. Payroll data will be used to determine eligibility. Employees who earn €20,000 or more per annum across employments, who are aged between 23 and 60 and who are not currently contributing to a pension scheme through payroll software will be automatically enrolled.
5. Employees who are aged under 23 or between 60 and 66, or who earn less than €20,0000 per annum will be able to opt in to My Future Fund. The same terms and conditions will apply to employees who opt in as will apply to employees who are automatically enrolled. Employers will also have the same obligations.
6. Employees will be able to opt out of the scheme in months 7 and 8 following enrolment. Contributions will be refunded to the employee, but the employer and State contributions will be retained in the employee’s savings pot. Employees will also be able to suspend contributions at any time outside of the initial 6 month mandatory participation period. Employees who opt out or suspend contributions will be automatically re-enrolled after two years if they still meet the eligibility criteria.
7. NAERSA will contract up to four investment management companies to invest the contributions. The investment managers will provide three strategies: a higher risk, a medium risk and a lower risk strategy.
8. All participants will be placed in the default strategy on a ‘lifecycle’ basis, whereby they will moved from the higher to the lower risk funds the closer they are to retirement age.
9. Participants may choose one of the three risk strategies if they do not wish to be in the default arrangement.
10. The retirement age for My Future Fund will be linked to the State Pension age, currently 66.
11. In the initial years, participants reaching this age will receive a lump sum of their contributions and investment returns, minus administration and investment charges. As the system evolves, it is possible NAERSA will offer alternative pension drawdown offerings other than lump sums.
12. Employees will have access to an online portal to check their contributions and returns and to initiate decisions such as opt out and suspension.
13. Employers will also have an online portal to check contributions and set up direct debit arrangements. The portal will also facilitate employers who do not use payroll software.
14. Tata Consultancy Services (TCS), a leading global IT services, consulting, and business solutions organisation, was selected as the preferred bidder, following a procurement process, to build and provide the administration of My Future Fund on behalf of NAERSA as a managed service. TCS is highly experienced, having administered the NEST Auto Enrolment system in the UK for more than a decade. TCS is part of the large multinational Tata Group. The IT services giant currently employs 1,400 people in Ireland.