Dáil Éireann Debate, Tuesday - 16 January 2018
1639. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection her plans for an auto-enrolment pension system; if a report has been or is being prepared on same; the expected publication date of same; the date this new system is expected to come into operation; the full-year cost of implementing such a system; and if she will make a statement on the matter. [1247/18]
View answerPensions reform is a Government priority and I can confirm an intention to publish and commence the implementation of a pensions reform plan in the near future. Perhaps the most fundamental reform measure which will be contained within this plan will relate to the development of a new auto enrolment supplementary retirement savings system for employees without pensions coverage.
Auto enrolment would see a transition from the current and purely voluntary supplementary pension system to one which will, subject to certain parameters, automatically enrol employees into a quality assured retirement savings system. This reform, where the saver will maintain the freedom of choice to opt-out, will encourage long term saving and asset accumulation amongst those who may otherwise suffer a reduction in living standards at retirement. It will increase the wellbeing, financial security and independence of future retirees.
Subject to any Government decision regarding the manner in which this project should be progressed, it is my objective that first members would be enrolled in the new system in 2021. This project timeframe reflects the scale of such a programme and its importance as being the most fundamental reform of the Irish supplementary pension system in generations.
Following publication of the reform plan, I intend that the detailed evidence building and consultation required to deliver an automatic enrolment system will be undertaken over an initial project planning phase. This will include an investigation of the potential organisational models for delivery and identify the likely costs involved. This information will be used to inform Government in selecting any preferred automatic enrolment operational structure and organisational governance. Decisions around main design parameters such as target membership, minimum contribution rates, financial incentives etc. will also impact on expenditure requirements. Correctly positioning/designing each of these parameters will be fundamental to the success of any system.
Until this work is complete and a preferred model chosen, it would not be possible to accurately detail the costs of designing and implementing the automatic enrolment system.
I hope this clarifies the matter for the Deputy.
