Employees across Ireland are being urged to check their pension options after the Department of Social Protection said some major employers are trying to steer workers away from the new state auto-enrollment system.
The Department of Social Protection has written to ICTU General Secretary Owen Reidy to warn of “token” pension schemes. It said some employers are offering just 1% contributions, which is less than 30% of the initial 1.5% rate under ‘My Future Fund’. The Department described this as a “nominal contribution unlikely to provide any meaningful pension benefit”.
‘My Future Fund’ launched on 1 January 2026 automatically enrols workers aged 23 to 60 earning over €20,000 who are not already in a qualifying occupational scheme. Contributions start at 1.5 per cent from both worker and employer, rising every three years to 6 per cent each by year 10. The State adds €1 for every €3 paid by the employee.
Minister Dara Calleary said the government is concerned about attempts to “subvert auto-enrolment”. The Department warned that it is an offence to hinder participation in the scheme and that complaints will be investigated.
From 1 January 2026, new rules require any exempt workplace scheme to have total contributions of at least 3.5 per cent, with a minimum 1.5 per cent from the employer, to count as an alternative.
National Automatic Enrollment Retirement Savings Authority (NAERSA), which administers the scheme, said 108,894 employers are registered covering 768,381 workers. It is contacting 6,647 employers identified as having eligible staff but not yet signed up.
The Irish Congress of Trade Unions welcomed the changes and told workers feeling pressure to waive pension rights to seek union advice.
