Ireland’s pension auto-enrolment scheme named ‘MyFutureFund’ came into effect on 1 January 2026, and has brought with it a plethora of regulations. What do these regulations mean for employers? Read on to find out what steps employers can take to ensure compliance.
An amendment to 668/2025 – Automatic Enrolment RetirementSavings System Savings Regulation 2025 presents implications for all employers.
Previously, pension contributions made by employees and/or employers into a defined pension contribution fund, or a personal retirement saving account (PRSA) meant that they would be exempt from the MyFutureFund scheme.
But the new regulation has introduced a stipulation of minimum contributions to workplace schemes, requiring them to match MyFutureFund contributions. This means that employees eligible for MyFutureFund will only be exempt if the existing contributions under workplace schemes meet the levels as per the Auto-Enrolment scheme.
In compliance with these regulations, the total pension amount, including the state contribution paid to MyFutureFund, must be met by the workplace schemes.
This means:
· Employer contributions must be at least 1.5% of an employee’s gross pay* (capped at €1,200 annually) and
· Total contributions must be at least 3.5% of an employee's gross pay* (capped at €2,800 annually)
*Gross pay for Auto-Enrolment includes all taxable payments such as BIK, bonus, commissions etc.
Most company pension plans include basic salary only as pensionable pay with no salary cap, whereas MyFutureFund considers all incomeas pensionable for the purpose of Auto-Enrolment.
For example:
An employee has a basic salary of €50,000 and receives a contractual annual bonus of €10,000
Company Pension (2% each employee and employer contributions)
· €50,000 pensionable - €2,000 paid into the pension scheme (total 4% contribution)
MyFutureFund
· €60,000 pensionable - €2,100 paid into MyFutureFund (total 3.5% contribution)
In this example, the contributions to the company scheme would not meet the requirements under the legislation.
MyFutureFund is, in the short term, giving employers time to make company schemes compliant with the legislation. Employees currently exempt from the scheme will remain exempt for the moment with no definite timeline provided as to when this will change.
According to information released by Department of Social Protection, the National Automatic Enrolment Retirement Savings Authority (NAERSA) will be using a three month look back period to monitor compliance with the legislation and will then issue correspondence to employers not meeting the standards with guidance on how to achieve compliance.
Initially, NAERSA will be issuing correspondence with an aim to ensuring compliance rather than imposing penalties,but it is anticipated that if employers continue to be non-compliant, further steps will be taken.
It is important to do a reassessment of your workforce andidentify those who are eligible for MyFutureFund.
If they are eligible for MyFutureFund, identify if they arealready contributing towards a company scheme of PRSA. If so, assess if theircontributions meet the standards by:
· Identifying which pay elements are classed aspensionable pay in the company scheme
· Completing a check on the contributions paidversus what would be due if the employee were in auto entitlement
· If the contributions do not meet the standards,assess whether you change your pension scheme definition of pensionable payand/or increase contribution rates
The PKF Payroll Services team can:
· Assess your workforce for eligibility
· Calculate contributions and check if they meetthe standards
· Give advice on how to become compliant
Contact Paula Sheanon, Head of PKF Payroll Services, today for a free consultation: paula@pkfble.ie | 01 678 1754
Visit www.pkfbrensonlawlor.ie to learn more about our other service offerings.
