Updated exemption standards for MyFutureFund: What employers need to know
On January 1st, the employee portal for the long-awaited Auto-enrolment retirement savings scheme, called My Future Fund opened, enabling participants to view contributions from themselves, their employer, and the State. From mid-January, employees can select investment options, monitor returns, and manage participation.This new pension savings scheme is designed for employees who are not currently contributing to a pension.
Under the scheme, the employee, employer, and Government all pay a certain amount into the employee’s pension fund. Since its launch the program has seen an exceptional response, with over 77,000 employers and approximately 645,000 employees registered on the employer portal.
To coincide with the portal launch, Minister for Social Protection, Dara Calleary signed regulations updating exemption standards for employers with occupational pension schemes. These standards, developed by NAERSA in consultation with the Pensions Authority, ensure alternative schemes provide benefits at least equivalent to MyFutureFund’s introductory rates.
This decision was expected to ensure that pension arrangements set up by employers outside of MyFutureFund are at least as favourable for the participating employee as they would be under the current introductory rates per MyFutureFund.
Key requirements:
Defined Contribution (DC) schemes
- Minimum total contributions of 3.5% of gross pay
- Employer must contribute at least 1.5%, capped at €1,200
- Contributions assessed over a three-month averaging period
Defined Benefit (DB) schemes
- Must provide long-term retirement benefits based on ongoing employment
NAERSA’s compliance approach will be supportive rather than punitive, focusing on helping employers meet standards. Enforcement powers will apply only where employers fail to engage or deny employees access to a compliant scheme or MyFutureFund.
Action for employers:
- Review current employer and total contribution levels
- Confirm that contribution structures meet the 3.5% total / 1.5% employer minimum
- Engage early if changes are required
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