The Irish Government’s auto-enrolment pension scheme is set to be delayed by a number of months.
The retirement savings scheme for employees who do not already have a workplace pension scheme or an additional pension arrangement was due to be introduced on 30 September.
The aim of the scheme is to substantially increase the number of employees who are currently saving for their retirement. The Government has estimated that approximately 800,000 new pension savers will be created.
Auto-enrolment will have significant implications for employers, with businesses being urged to prepare for it in advance of its introduction. An employer who fails to fulfil their obligations under the scheme, including implementing a payroll instruction for enrolment, and/or deduction or remittance of contributions as required, will be subject to penalties.
Among the reasons reported for the delay of the scheme is the amount of administration involved in implementing it. In addition, the Government wants to launch it in alignment with other projects.
