Reforms in Ireland’s pension system will include a new supplementary defined contribution plan with automatic enrollment for workers age 22 and over who aren’t enrolled in any other occupational pension plans, according to an announcement by the Irish Department of Social and Family Affairs.
Under the New National Pensions Framework, employees in the new supplemental DC plan will contribute 4% of their salary, and matching contributions of 2% each from their employers and the government.
Employees will be allowed to opt out of the national pension plan even if they are not covered by another plan, but will be re-enrolled every two years.
The government also announced the retirement age will rise to 66 by 2014, 67 by 2021 and 68 by 2028. The current retirement age is 65.
An implementation group is being established to consider the “legislative infrastructure required to put these reforms into operation,” according to the announcement. Implementation of the auto-enrollment pension plan is expected in 2014.
Niamh Fitzgerald, spokeswoman for the department of social and family affairs, could not be reached by press time for further information.