Dáil Éireann Debate, Wednesday - 29 November 2017
73. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the status of her plans to introduce an auto-enrolment pension system; and if she will make a statement on the matter. [50503/17]
Amharc ar fhreagraMy Department is drafting what will be a Governmental five year pensions reform plan and I can confirm the Government’s intention to publish and commence the implementation of this reform plan in the near future. The objective of this reform plan will be to provide for a fit for purpose pension system for the coming decades.
Perhaps the most fundamental reform contained within the plan will be confirmation of the Government’s intention to develop and introduce a new automatic enrolment supplementary retirement savings system for employees without pensions coverage. The rate of supplementary pension coverage in Ireland is 47% of the working population and this reduces to 35% when the private sector is considered in isolation. Without reform, it is evident that there will not be the increase in savings necessary to ensure that many current workers avoid significant reductions in their living standards at retirement.
Automatic enrolment will 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 for retirement. It will increase the wellbeing, financial security and independence of future retirees and furthermore improve the sustainability of our wider pensions system.
Following publication of the reform plan, it is intended that in quarter 1 of 2018 an automatic enrolment policy paper will be published to act as a basis for a public consultation process. Government’s intention is to see first enrolments to the new system by 2021.
I hope this clarifies the matter for the Deputy.
