The Irish Institute of Pensions Management (IIPM) has raised concerns about the implementation of new minimum contribution standards linked to Ireland’s auto-enrolment system, warning that employers have been given no lead-in period to comply.

In a statement issued on 16 January, the IIPM said the MyFutureFund portal had updated its employer FAQs to include details of the statutory instrument that came into force on 1 January 2026, setting out minimum contribution requirements for schemes seeking exemption from auto-enrolment.

Under the new rules, occupational pension schemes and PRSA arrangements must provide minimum contributions of 3.5 per cent of an employee’s gross remuneration, with at least 1.5 per cent paid by the employer, in order to qualify for exemption from enrolment into MyFutureFund.

While the IIPM said it supported the objective of improving pension coverage, it noted that previous communications had indicated that employees already receiving pension contributions would not be enrolled into MyFuture Fund until a later phase.

With the minimum standards now in force, the institute explained that members had reasonably expected a transitional period to allow schemes and employers to meet the new contribution thresholds.

“However, no such period has been provided,” the IIPM stated.

The institute added that, according to the updated FAQs, employers must, without delay, ensure that their defined contribution schemes or employer PRSA arrangements meet the minimum contribution rates, or affected employees will be enrolled in the MyFutureFund.

It also highlighted that, as automated compliance checks have not yet been implemented by NAERSA, employers are currently responsible for providing proof that their arrangements meet the required standards.

In practical terms, the IIPM stressed that further clarification was needed on how NAERSA would engage with employers where shortfalls are identified, how any look-back assessments would be carried out, and what evidence employers would be required to provide to demonstrate exemption from auto-enrolment.

The institute confirmed that it would continue to update its members as soon as further guidance was issued by NAERSA.

European Pensions has contacted NAERSA, but it has yet to respond.

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