Fórsa has welcomed the publication of detailed proposals for new ‘auto-enrolment’ pension arrangements, which would introduce compulsory contributions from workers and their employers. But the union says employers and the state should contribute more than workers to the scheme.
The Government proposals, which were launched yesterday (Wednesday 22 August) envisage that the scheme would be rolled out from 2022.
Under the current Government plans, workers would have to initially contribute 1% of their salary towards their pension pot, increasing to 6% by 2027, with employers having to match the workers contribution. The state would then pay €1 for every €3 the worker contributes.
Under the current Government plans, workers would have to initially contribute 1% of their salary towards their pension pot, increasing to 6% by 2027, with employers having to match the workers contribution. The state would then pay €1 for every €3 the worker contributes.
Fórsa official Billy Hannigan welcomed the move, but said it fell short in terms of employer contributions.
“It will provide mandatory pension entitlements for all workers wherever they are employed, and will significantly enhance occupational pension coverage. But Fórsa believes the employer’s contribution must be at least twice that of the worker.”
It will provide mandatory pension entitlements for all workers wherever they are employed, and will significantly enhance occupational pension coverage. But Fórsa believes the employer’s contribution must be at least twice that of the worker.
The Irish Congress of Trade Unions (ICTU) also welcomed the announcement of detailed proposals on the new scheme. But its social policy officer Laura Bambrick said statutory penalties would be needed to prevent employers from encouraging workers to opt out of the scheme by classifying them as self-employed.
Fórsa backed Government proposals for the introduction of ‘auto-enrolment’ pension schemes for all workers, funded by contributions from employees, employers and the State, at its national conference in May.
You can find more information on the public consultation for the new scheme here.