Public Policy Bulletin, 4 November 2019

Nov 04, 2019

 

In this week’s bulletin, read about the Irish Government’s latest announcements in the areas of pension auto-enrolment, and SME and entrepreneurship policy.

Government announces plans to auto-enrol private workers in pension scheme

The Department of Employment Affairs and Social Protection has recently announced key elements of a new system of pension auto-enrolment, set to be implemented on a phased basis from 2022. Under the new system,

  • Workers aged between 23 and 60 earning more than €20,000 a year, will be automatically enrolled in a pension scheme, if not already in one with their workplace.
  • Contributions will start from 1.5 per cent of salary, rising to 6 per cent of salary in their tenth year of employment, giving workers more time to accommodate the increase.
  • There will be opportunities to opt-out and take breaks from contributions, with contributions in the first six months being mandatory.
  • Employers will be required to match contributions, with the Government’s contributions yet to be announced.

Key elements of the new system are in line with the Institute’s November 2018 response to the Strawman Public Consultation on the process for an automatic enrolment retirement savings system for Ireland; mainly that automatic enrolment should supplement the state pension, and also complement the existing supplementary pension system.

A further consultation process will take place following the finalisation of the remaining elements of the design.

 

OECD review on Irish SME and Entrepreneurship Policy published

Under the Future Jobs initiative, the Irish Government has published a review undertaken by the OECD on SME and Entrepreneurship Policy in Ireland. A roadmap has also been published which sets out priority areas for implementation.The OECD’s analysis will form the basis for a new Government strategy on SMEs and Entrepreneurship, which will be published by the end of the year following further consultation. Some of the main OECD recommendations cover areas such as broadening the remit of the Local Enterprise Offices, digital and automation skills, and engagement in areas of energy and environment.

 

 

Read all our updates in our Public Policy web centre.