Auto-enrolment: How will auto-enrolment work?

Описание: Watch a video about auto-enrolment.
How will auto-enrolment work?
A new body called the National Automatic Enrolment Retirement Savings Authority will be set up to run the scheme. It’ll be within the Department of Social Protection at first, before becoming an independent body. It will administer the scheme in the best interests of the employees, and its remit will include collecting contributions, allocating investment returns, operating an online portal for employees and employers, and facilitating employees to keep one pension pot in the system as they move from job to job. It will also ensure compliance with the auto-enrolment legislation, and provide information to employees and employers.

Here’s a basic overview of how the auto-enrolment scheme will work. Employee, employer and State contributions will be sent to the Authority. The Authority will pool the contributions and allocate them to the investment management companies, who will invest the money and returns. This will then be allocated to the employee’s personal pot by the Authority, and paid on their retirement.

I’ll now explain the process in more detail. The Authority will use payroll data from Revenue to identify eligible employees. Once they’ve been identified, they will be enrolled immediately, meaning that there are no waiting periods for this scheme. The Authority will send a payroll notification through payroll software, just like Revenue sends payroll notifications for the collection of tax. Employers will apply the payroll notification and calculate the contributions.

The contributions will then be sent to the Authority, and the Authority will collect the State top-up separately. The contributions will be pooled and sent to the investment management companies, who will invest the money to grow the employee’s pot. The Authority will manage the pot, ensuring that employees have one pot as they move from job to job, and to give employees access to information about their savings through an online portal.