Dáil Éireann Debate, Tuesday - 23 May 2023
78. Deputy Thomas Pringle asked the Minister for Social Protection if her Department has considered the benefits to the State coffers of a smoothed approach to the automatic enrolment pension system being proposed by Government; and if she will make a statement on the matter. [22110/23]
View answerThe introduction of an automatic enrolment (AE) system is a Programme for Government commitment and a key priority for me as the Minister for Social Protection. Under AE, employees will have access to a savings scheme, co-funded by their employer and the State. For every €3 a worker pays into it, they'll have another €4 credited to their account. These contributions will then be invested, with members holding their own individual retirement savings accounts that they can drawdown when they retire. Implementation of the AE system is well underway, with the first enrolments expected in 2024.The proposal referred to in the question has been considered by officials in my Department and discussed with other relevant Government Departments and agencies. I recently referred this proposal to the Pensions Council for an independent external evaluation of the issues involved.The Pensions Council was set up to advise the me on matters relating to policy on pensions. Membership of the Council has been constituted to ensure the relevant skills, specialist knowledge, and experience is in place to allow for the provision of collective advice, information and assistance in the development of pensions policy. I have requested the Pensions Council to prioritise this piece of work, in advance of progressing the legislation required to underpin the AE system later this year.I hope this clarifies the matter for the Deputy.
