Introduction
As HR leaders prepare for 2026, it’s important to note this big benefit change coming to Ireland – MyFutureFund. This auto-enrolment pension scheme is set to launch on January 1, 2026, marking a significant shift in how retirement savings are approached for approximately 750,000 workers who are not currently participating in a pension plan. This initiative aims to simplify and standardize retirement savings, but it also introduces new responsibilities for both employers and employees.
Understanding MyFutureFund
Under the MyFutureFund scheme, eligible employees, those aged between 23 and 60, earning at least €20,000 annually, and not already enrolled in a pension scheme, will be automatically enrolled. Contributions will start at 1.5% from the employee, matched by the employer, with an additional 0.5% from the State. Over a 10-year period, these rates will gradually increase to 6% each from the employee and employer, with the State contributing 2%.
The National Automatic Enrolment Retirement Savings Authority (NAERSA) will oversee the administration, ensuring portability of pensions across jobs and offering both default and customizable investment plans.
Impacts on Employee Engagement
- Increased Financial Security: The scheme provides a straightforward method for employees to save for retirement, potentially leading to greater financial security in later years.
- Enhanced Trust in Employers: Employers who actively engage with the scheme and communicate its benefits effectively can build trust and demonstrate a commitment to employee welfare.
- Potential for Opt-Outs: While the scheme is designed to be opt-out, some employees may choose to withdraw if they feel the contributions are burdensome. Employers should be prepared to address concerns and provide support to retain participation.
Employer Responsibilities
- System Integration: Employers must ensure their payroll systems are compatible with the MyFutureFund requirements, including the ability to deduct and remit contributions accurately.
- Employee Communication: Clear communication is essential. Employers should inform employees about the scheme, its benefits, and their rights, including the process for opting out or suspending contributions.
- Compliance Monitoring: Employers are responsible for ensuring timely and accurate contributions. NAERSA will oversee compliance, and failure to meet obligations could result in penalties.
Did you know that Eppione Limited is regulated by the Central Bank of Ireland? We are a full-service benefits platform that has financial advisors and benefit consultants to help you create a competitive and compliant benefits strategy. If you have any questions about MyFutureFund or anything benefits-related, feel free to contact us.
Supporting Employees Through the Transition
- Educational Resources: Providing employees with information sessions before the new year or easily accessible materials about the scheme can help them understand its benefits and how it works.
- Personalized Advice: Offering access to financial advisors or tools that allow employees to assess their retirement needs can empower them to make informed decisions.
- Feedback Mechanisms: Establishing channels for employees to voice concerns or ask questions ensures that they feel supported throughout the transition.
If you need help communicating both existing and new benefits, Eppione is here to help! We help you provide clear, accessible information for your employees while freeing up your time to focus on what matters most.
Conclusion
The introduction of MyFutureFund represents a pivotal moment in Ireland’s approach to retirement savings. While it simplifies the process for employees, it also places new challenges on employers to ensure smooth implementation and ongoing support. By proactively engaging with the scheme and supporting their employees, employers can foster a culture of trust and financial well-being, ultimately benefiting both the workforce and the organization.
Employers should begin preparations now by reviewing their payroll systems, communicating with employees, and ensuring compliance with the upcoming requirements. For more information and resources, feel free to contact us.
