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The Automatic Enrolment Retirement Savings System Regulations 2025 (S.I.s 637 and 668 of 2025) were signed by Minister Dara Calleary just before the Christmas break.
These regulations represent a significant development in the retirement savings landscape and came into effect on 1 January 2026. One of the main developments is the introduction of new minimum employer/employee contribution standards for occupational pension schemes and personal retirement savings accounts (PRSAs) which must be met before an employee is exempt from automatic enrolment.
In simple terms, if an employee is already participating in a scheme or PRSA that meets the new minimum contribution levels, their employment may be considered "exempt" from AE as their existing pension arrangements are deemed sufficient. If a scheme or PRSA does not meet the new contribution standards, both the employer and the member/employee will be required to contribute to the AE system separately in addition to the continuing existing contributions being made to the scheme/PRSA.
In a recent press release (available here: Minister Dara Calleary gives update on MyFutureFund), Minister Calleary states that the contribution standards are designed to ensure that pension arrangements outside of MyFutureFund (the working name for the AE arrangement) are at least as favourable for the participating employee as they would be under the introductory contribution rates in MyFutureFund.
Standards for pension scheme/PRSA membership to constitute "exempt employment"
Schedule 1A of the new regulations sets out the minimum contribution standards as follows:
For defined contribution (DC) occupational pension schemes:
- Employer contributions must be at least 1.5% of the employee's gross pay, or €1,200 per year, whichever is less; and
- The combined total of employer and employee contributions must be at least 3.5% of gross pay, or €2,800 per year, whichever is less.
For defined benefit (DB) occupational pension schemes:
- Continued service in employment must entitle the employee to accrue a "long service benefit".
For PRSAs:
- Employer contributions must be at least 1.5% of the employee's gross pay, or €1,200 per year, whichever is less; and
- The combined total of employer and employee contributions must be at least 3.5% of gross pay, or €2,800 per year, whichever is less.
Other detail in the regulations
The new regulations also provide some of the operational detail for the Automatic Enrolment Retirement Savings System on a wide range of topics such as: how contributions are to be collected and repaid; what information employers must provide; how the system should operate in the event of technology failures; and the procedures for early access to funds on grounds of incapacity or ill-health. There are also provisions on communications with both employers and employees, information sharing with the Revenue Commissioners, and some aspects of the enforcement mechanisms for non-compliance.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
