A major change is coming for Irish employers. The Auto-Enrolment (AE) Retirement Savings System, known as My Future Fund, will launch on 1 January 2026 and will transform how employees save for retirement. For business owners and HR managers, preparing now is essential to ensure a smooth and compliant implementation.
Why My Future Fund Matters
The system is designed to give more employees access to a private pension. For many employers, this will be a new administrative process. Adapting payroll, preparing HR documents, and communicating with your team are the key steps to take ahead of the system launch.
How Auto-Enrolment Works
The NAERSA (National Automatic Enrolment Retirement Savings Authority) will administer the program, but employers will play a crucial role by:
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identifying eligible employees
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calculating and remitting contributions
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integrating with payroll systems
Most administrative tasks, such as enrolment, opt-outs, suspensions, and re-enrolment, will be handled by NAERSA.
Who is Covered?
An employee will be automatically enrolled if they meet all three criteria:
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Age: 23–60 years
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Earnings: at least €20,000 per year
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Pension Status: not currently part of an existing occupational pension plan
Employees who do not meet these criteria (e.g., lower earners or outside the age range) may voluntarily join the scheme. Some employment categories may be excluded.
Contributions and Funding Model
The system uses a shared contribution model between the employee, employer, and the State. Contributions will be phased in over ten years.
| Period | Employee | Employer | State | Total |
|---|---|---|---|---|
| 2026–2028 | 1.5% | 1.5% | 0.5% | 3.5% |
| 2029–2031 | 3.0% | 3.0% | 1.0% | 7% |
| 2032–2034 | 4.5% | 4.5% | 1.5% | 10.5% |
| 2035+ | 6.0% | 6.0% | 2.0% | 14% |
Note: Contributions are calculated on gross earnings up to a maximum of €80,000 per year. The State top-up replaces the traditional employee tax relief.
Adjusting Payroll and HR Processes
Your payroll system should:
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receive AEPN (Auto-Enrolment Pension Notification) from NAERSA
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accurately calculate employee and employer contributions
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report contributions to NAERSA by each pay date
HR teams should also prepare:
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an internal auto-enrolment policy
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a FAQ document for employees
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updated employment contracts
Opt-Outs and Suspensions
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Opt-out: Employees may opt out in months 7–8 after enrolment; employee contributions are refunded, but employer and State contributions remain in the fund.
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Suspension: After the first six months, employees may pause contributions for 1–2 years.
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Re-enrolment: Employees who opted out will be automatically re-enrolled after two years if they still meet eligibility criteria.
NAERSA manages these processes, but HR must understand the timelines and communicate them clearly to staff.
Why Acting Now is Important
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Avoid fines and interest for late contributions
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Ensure payroll is ready for smooth deductions from January 2026
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Clear communication builds employee trust
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Well-prepared HR procedures reduce errors and simplify compliance