The nationwide auto-enrolment pension scheme, for private-sector workers in Ireland made substantial progress during 2025. While on the government radar since at least 2006, it was in 2025 that the long-term planning gave way to the establishment of My Future Fund.
Throughout 2025, employers were finalising their planning, deciding whether to include employees in a new or an existing pension scheme or to rely on the government backed scheme. The first employer and employee contributions under auto-enrolment are scheduled to begin in early 2026, rather than 2025 as originally expected when we entered 2025, allowing employers and employees a longer window to prepare.
In mid -November 2025, the government announced they would be urgently updating legislation to require occupational pension schemes to provide a minimum total contribution rate of 3.5% of the employee’s gross remuneration in order for employees to be exempt from auto-enrolment into the new central retirement savings system, My Future Fund. While the government’s intention is to prevent some employers from abusing the system, employer representatives and the pension industry have expressed concern on this last-minute legislation change.
From its inception, the legislation introducing auto-enrolment provided that an alternative pension scheme must meet minimum contribution standards, which would be fully defined by the end of Year 6. Initially, it was stated that any level of employer or employee contribution would qualify for temporary exemption for employees already in a pension scheme.
It is unclear at the time of writing what the requirements for employers will be, as we are waiting for this legislation to be published.
So, in 2026, a key risk for employers to watch for, will be the final design of the minimum standard test for existing pension schemes.
WHAT ELSE SHOULD EMPLOYERS BE AWARE OF?
The Employment (Contractual Retirement Ages) Bill 2025 is in its final stages having passed through the Dail. The Bill creates a new statutory structure for employees who wish to remain in employment to state pension age (Age 66) if they wish. This is relevant to employers who have a contractual retirement which is lower than the state pension age.
Employers should consider reviewing what the rules of their pension scheme and additional benefits provided for such employees.
In figures released by the Central Statistics Office in 2024 for International Day of the Older Persons, it was noted that between Q2 2019 and Q2 2024, the number of people aged 65 years and over and in employment rose by 57% from 78,100 to 122,300.
Employers will need to plan for this, reviewing their current practices & contractual agreements.
STANDARD FUND THRESHOLD REFORM
The Standard Fund Threshold (SFT) is currently €2,000,00 and has been at this level since 2014. This threshold will increase by €200,000 p.a. from 2026 to 2029 and in line with changes in weekly average earnings thereafter. Personal Fund Fund Thresholds (PFTs) will also increase at the same time and by the same amount. This is good news for higher earners and business owners as it will provide greater headway for savers with long-term contributions, without being penalised through excessive taxation.
CWPS TURNED 60
In 2025, the Construction Workers Pension Scheme (CWPS) celebrated 60 years of providing pension savings and risk benefits to the Construction and related industries. To mark that milestone, a member survey was conducted. We look forward to releasing the results of this survey in early 2026, which will provide insight about how members and employers engage with these benefits.
CPAS administers the Construction Workers Pension Scheme (CWPS) and CERS. Contact Susan O’Mara, CPAS Business Development Manager, by emailing susan@cpas.ie or by direct dial 01 2234942.