Summary of auto-enrolment system

Brendan Burgess

Brendan Burgess

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You will be automatically enrolled if you are
  • over 23
  • Up to age 60
  • Earning over €20,000
Anyone aged 23 or younger can opt in.

Over 60, you can opt in. (Why wouldn't you when your €100 is being topped up by €133!)

The employer and state contribution is capped at €80,000

Contributions will be collected by a Central Processing Authority.

There will be a choice of 4 investment funds.
 
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Employees will be free to opt-out of
the system at the end of a minimum
membership period (during the 7th and
8th month of membership) and on each
occasion during the first ten-year period
that contribution rates increase.
Employees will also be free to suspend
making contributions at any time.
 
It will be taxed in the same way as other pension funds on retirement.

Benefit draw-down will be linked to the
State Pension age. Members will be able
to draw-down their funds as a lump sum,
annuity, or approved retirement product
in line with pension and taxation law
prevailing at the time of retirement.


Pension drawdown by members will be
via the existing range of regulated pension
products and members will have the right
to engage with commercial providers.

In time, the CPA may tender for a set of
pension drawdown products.
 
So the central processing authority looks after change in employment? The worker doesn't go back to 1.5% if they change jobs?
 
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