Will new employees be auto-enrolled straight away?
There are no waiting periods for the auto-enrolment scheme. New employees who have an earnings record with Revenue where they have earned €20,000 or more in a year will be automatically enrolled. For new employees who have no previous earnings record or a gap between their previous and new employment, enrolment may take up to 13 weeks while it is established if they will likely meet the earnings threshold.
Will I have to tell my employees when they’ve been enrolled?
Under the auto-enrolment legislation, employers are obliged to inform their employees when they have been enrolled, and to inform them of the date of enrolment.
WilI employees who have opted for cash in lieu instead of joining a pension scheme be enrolled?
If these employees don’t have pension contributions paid through the payroll and if they meet the age and income eligibility criteria, they will be automatically enrolled.
Will employees who have a pension in another country but are paid through payroll in Ireland be enrolled?
If data provided to the Revenue Commissioners in Ireland does not show active pension contributions and they meet the age and income eligibility criteria, they will be automatically enrolled.
How will the employee’s salary be assessed for eligibility?
Any income reported in the gross pay field on payroll will be assessed. For some employments, it will be clear on ‘Day 1’ that an employee meets the minimum earnings criterion. For others, it might take up to 13 weeks for NAERSA to apply a ‘look back’ at an employee’s earnings in a pay reference period.
Will employers have to contribute to personal pensions now?
No, there are no plans to force employers to contribute to personal pensions if that is outside the terms and conditions of your employment. It will be mandatory for employers with eligible employees to contribute to automatic enrolment when it is launched.
What if employers already have a pension scheme in place for their employees?
Any existing pension scheme will run in parallel to auto-enrolment. Any employees that have a record via payroll of either employee contributions and/or employer contributions will not be enrolled in the scheme.
Can employers automatically enrol employees in their existing company pension scheme?
The auto-enrolment legislation does not provide for employers to automatically enrol their employees into their existing pension scheme. That is a matter for employers and trustees of their pension schemes. Essentially, it depends on the employment contract you have set with your employees.
Will employers still have to provide access to a PRSA?
The Automatic Enrolment Retirement Savings System Act 2024 Act does not affect existing legislation, so you will still have an obligation to offer access to a PRSA for employees who wish to avail of it.
Do existing schemes need to meet standards to be exempt?
No, once there is a pension contribution paid through payroll from an employee or employer, the employee will be deemed as having pension coverage already and won’t be enrolled with respect to that employment. However, if you have another employment for which you are not contributing to a pension through payroll, you may be enrolled in respect of that employment.
By the end of year six of the operation of the auto-enrolment scheme, at the latest, standards for the exemption of existing pension schemes will be developed with the assistance of the Pensions Authority.
If an employee opts out do employers still need to pay their contribution?
You won’t have to keep paying employer contributions if your employee opts out of the scheme. When the employee is re-enrolled, a new payroll notification will be available and all contributions will start again.
If an employee is earning over €80,000 across multiple employments (for example two employers paying €50,000 each), how does each employer know how much to pay?
NAERSA will issue the Automatic Enrolment Payroll Notification (AEPN) through payroll software to both employers as normal. When the employee reaches the income threshold of €80,000 within the tax year, the payroll notification to both employers will be updated to reflect that no further contributions are to be paid. A new payroll notification will issue at the start of the next tax year to restart contributions if the employee still meets the eligibility criteria.
Do employers have to also pay contributions for employees who choose to opt in?
Yes, employees who choose to opt in will be treated the same as those who are automatically enrolled, and that means the employee, employer and State will contribute the set rates as outlined above.
Do the contribution rates for my existing scheme have to match the contribution rates under auto-enrolment?
No. The set contribution rates only apply to the auto-enrolment scheme. However, by the end of year six of the operation of the auto-enrolment scheme, at the latest, standards for the exemption of existing pension schemes will be developed with the assistance of the Pensions Authority.
What is included in the definition of salary or earnings for auto-enrolment?
An employee’s gross earnings will be assessed for the income threshold and for the calculation of contributions. This means that anything that’s included in the gross pay field on payroll will be assessable.
How will contributions be paid?
Employers will pay employee and employer contributions directly to NAERSA. It is anticipated that different methods will be available, including variable direct debit. Employers will be able to set this up on the employer portal. More information will be made available closer to launch date.
Will there be additional employer returns to be made by employers or will all the pension deduction information be processed through existing Revenue PAYE returns?
As an employer you will need to make a separate return through payroll directly to the National Automatic Enrolment Retirement Savings Authority. Information on how this process will work will be made available to employers closer to go-live.
The calculation of contributions will be made through your existing payroll software.
Do we need a broker to manage auto-enrolment for us?
No, auto-enrolment will be administered by a central body, the National Automatic Enrolment Retirement Savings Authority, so there is no need to engage the services of a broker.
Where do I find further information on Auto-enrolment?
Click here for further information
