"About 750,000 workers are set to be signed up to the My Future Fund auto-enrolment pension from early January. It has been described as the biggest shake-up in the pensions landscape in the history of the State. It has emerged, however, that some companies are trying to avoid having their staff signed up to My Future Fund because they do not want to handle the administrative burden and cost involved."
"These in-house schemes involve "token" contributions being made by the employer. Unions say this is leaving staff short-changed. Contributions as low as 1pc from the employer, with nothing being contributed by the employee, are a feature of these in-house schemes, according to a letter from Department of Social Protection secretary general John McKeon to Irish Congress of Trade Unions (Ictu) general secretary Owen Reidy. Social Protection Minister Dara Calleary told the Irish Independent he was now rushing to sign a statutory instrument."
"The much-delayed My Future Fund scheme comes into effect from the start of January. People who do not have a company or private pension, earn more than €20,000 a year and are aged between 23 and 60 will be automatically enrolled in the new system. The employer will initially contribute 1.5pc of the staff member's salary, with the same percentage being contributed by the staff member and the Government topping this up with a 0.5pc contribution."
About 750,000 workers will be auto-enrolled into the My Future Fund from early January. Workers without a company or private pension who earn over €20,000 and are aged 23–60 will be enrolled. The employer initially contributes 1.5% of salary, the employee contributes 1.5%, and the State adds 0.5%; employer and employee contributions will rise to 6% after ten years. Some companies are trying to avoid My Future Fund by enrolling staff in weaker in-house schemes that feature token employer contributions as low as 1% and no employee contributions. The minister plans a statutory instrument to require a minimum employer contribution to occupational pensions.
Read at Irish Independent
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