The Minister for Social Protection, Heather Humphreys, has announced Government approval of the General Scheme of the Automatic Enrolment (AE) Retirement Savings System Bill. The Bill has now been referred to the Joint Oireachtas Committee on Social Protection for pre-legislative scrutiny.
The new system is designed to simplify the pensions decision for workers and make it easier for employers to offer a workplace pension. Minister Humphreys said she wanted to ensure that people can enjoy their retirement years with some financial security.
She added that the new scheme is intended not just to get people saving earlier but to support them in that saving process by simplifying the pension choices and providing for significant employer and State contributions as well.
"People are living longer and healthier lives and through AE I want to ensure they can enjoy their retirement years with some financial security. I know for many people retirement seems a long way away and they think they have a lot of time before they need to think about a pension.
"Pensions are complicated and so we all tend to put it on the long finger - it's something I'll get round to next year or maybe even the year after. AE is a generational reform in the Irish pensions landscape.
"It will combat pension inertia by turning the present system on its head to one where people will have to consciously 'opt-out' of supplementary pension coverage rather than 'opting in'. It is intended not just to get people saving earlier but to support them in that saving process by simplifying the pension choices and importantly by providing for significant employer and State contributions as well," she added/
