Pension Auto-enrolment has been launched
Pension Auto-enrolment called ‘My Future Fund’ is a new retirement savings scheme for employees which launched on 1 January 2026. Caroline Reidy reports
Print20 February 2026
Auto enrolment comes into effect for employees who do not already have a workplace pension scheme or an additional pension arrangement. Contributions have begun to be collected from 1 January 2026.
Pension membership in Ireland, particularly among private-sector workers, has historically been low. According to recent data, only about 35% of private sector workers have supplementary pension coverage.
‘My Future Fund’ is a more straightforward option for employers compared to procuring and administering an occupational scheme.
Auto-enrolment will increase both pension coverage and overall pension adequacy by making it easier for employees to access a quality assured retirement savings scheme.
Who will be enrolled?
Employees who meet the following conditions will be automatically enrolled.
Be aged between 23 and 60
Earn more than €20,000 per year
Not currently paying into a work or private pension through payroll – employees will not be enrolled if they are already paying into a workplace pension.
People who are self-employed and those who are not currently earning an income through an employer will not be enrolled.
How will it operate?
The National Automatic Enrolment Retirement Savings Authority (NAERSA) will administer the auto-enrolment scheme. NAERSA will assess if you are eligible for auto-enrolment by using revenue data subject to data protection compliance and if you are eligible, they will automatically enrol you.
- It will eventually become an independent, statutory body.
- It will tender for investment management, administration and fund accounting services.
- It will collect contributions from the employee, employer and the State.
- It will distribute contributions to the Registered Providers (approved financial institutions) for investment.
- It will allocate investment returns to employee accounts.
- It will operate the online portal where employees can see their account balance and make decisions such as opting out.
- It will be responsible for compliance with the scheme.
- It will ensure that the participants interests are at the heart of the system.
- It will facilitate the ‘pot-follows-member’ approach whereby employees will have only one account with the National Automatic Enrolment Retirement Savings Authority over their working life.
Economies of scale over time will allow the National Automatic Enrolment Retirement Savings Authority to keep fees and costs down.
The auto enrolment scheme will be supervised by the Pensions Authority. It will have a statutory independence and will be governed by a Board of Directors. It will not replace the state pension, but it does aim to supplement it.
Employers who fail to meet their auto enrolment obligations may be subject to penalties and possible prosecution.
How are contributions collected?
Once an employee has been identified as eligible for auto-enrolment, NAERSA will send the employer an Automatic Enrolment Payroll Notification (AEPN) through payroll software.
This will inform them of the contribution amounts the employer and the employee need to pay as a percentage of gross earnings.
The employer will apply the AEPN and the contributions will be visible on the employee’s payslip.
The employer will have several options to pay the contribution amounts to NAERSA. The easiest way will be a variable direct debit, which can be set up through the auto-enrolment employer portal.
Contributions must be paid at the same time as the employee is paid, and contribution information must be provided to NAERSA.
If an employer does not use payroll software, they will be facilitated on the employer portal.
Opting out
After employees are enrolled, they must stay in the pension scheme for at least six months. If an employee opts out six months after they are enrolled, their contributions will be refunded. Following a period of two years, employees who have opted out and that are still eligible will be re enrolled if they have not set up a workplace pension in the interim.
Considerations for employers
All employees meeting the eligibility criteria, who do not already have pension coverage in respect of their employment with the employer will be auto enrolled.
Employers will need to ensure that payroll software, when updated, can take instruction for enrolment, calculate and pay employee and employer contributions to NAERSA.
Employers will be required to match members’ contributions up to an eventual maximum of 6% subject to an earnings threshold of €80,000.
Contribution rates are being phased in gradually over the first decade of the scheme to allow for employers to budget.
If employers fail to meet auto-enrolment obligations as an employer, they will be subject to penalties and possibly to prosecution.
Conclusion
Pension auto-enrolment represents a transitional change in Ireland’s retirement savings environment. While it presents operational and financial challenges, the long-term benefits for individuals and the broader economy are substantial.
If you require further support or advice relating to HR, please do not hesitate to contact us at hrsolutions@nfpireland.ie / (066)7102887.
For more information visit https://nfpireland.ie
Caroline Reidy, Head HR Solutions, HR and Employment Law Specialist
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