Compliance with Irish Pension Regulations

Irish pension compliance, Pension regulations

Ireland Auto-Enrolment Retirement Savings System

Implementation Timeline:

The new auto-enrolment system is set to begin in January 2025, with contributions gradually phased in over ten years​.

Contribution Rates:

• Employees: Start at 1.5% of gross earnings, increasing every three years to reach 6%.
• Employers: Match employee contributions starting at 1.5%, also increasing to 6% by the tenth year.
• State: Contributions will start at 0.5% and increase to 2% over ten years.

For every €1 an employee contributes, the total credited to their pension will be €2.33 due to additional contributions from their employer and the State​

Opting In and Out:

• Employees will be automatically enrolled but can opt out after six months. If they opt out, they are re-enrolled every two years and can opt out again after another six months​.
• Employees can also suspend contributions for up to two years without losing their accumulated savings.

Investment Choices: Employees will have four fund options, ranging from conservative to higher risk profiles. If no preference is expressed, a default life-style/life-cycle fund will be chosen​​.

HRLocker is designed to comply with Irish pension regulations, particularly the Pensions Act 1990 and the European Union (Occupational Pension Scheme) Regulations 2021. 

Here's a detailed overview of what HRLocker provides and how it aligns with the requirements:

Compliance with Upcoming Pension Legislation

• Auto Enrolment:
  • Ensuring employees are auto-enrolled and periodically re-enrolled is a key compliance requirement. HRLocker's features for auto-enrolment and reminders meet this obligation.
• Transparency and Access:
  • By allowing employees to see their pension plans and history, HRLocker ensures transparency, which is crucial for compliance with regulations that mandate clear communication about pension benefits.
• Comprehensive Record-Keeping:
  • The ability to store detailed pension information, including contributions and frequency, helps maintain accurate records. This is essential for audits and compliance checks.
• Employee Opt-Out:
  • Providing an opt-out option aligns with regulations that allow employees to opt-out of pension schemes. The feature to auto-enrol them after a set period helps ensure long-term compliance.
• Reporting:
  • Comprehensive reporting tools help employers monitor participation and contribution details, facilitating compliance with regulatory requirements.

For more information on Irish pension regulations, visit the Pensions Authority website.