Oireachtas Committee Report on Automatic Enrolment
Yesterday, on May 3rd, the Joint Committee on Social Protection, Community & Rural Development and the Islands published their Report on Pre-Legislative Scrutiny of the General Scheme of the Automatic Enrolment Retirement Savings System Bill 2022. The Report follows the consideration by the Committee of submissions and hearings on the Heads of Bill in late 2022 and early 2023. The Report sets out 21 Observations and Recommendations. Some of those align with IAPF submissions including:
1. The Committee recommends that the lower age limit be reduced from 23 to 16 years, aligning it with the PRSI minimum age threshold.
5. The Committee recommends that when participants are auto enrolled, they should be given a sample of the likely pension they will receive on retirement in real terms by adjusting for inflation.
12. The Committee recommends that clarity be provided on the form of taxation to be applied to pension pots in retirement so that members can make proper provision for the future over the long term.
20. The Committee recommends that the Department carefully consider tax relief in the General Scheme of the Autoenrollment Bill and its impacts on the wider pension system.
Of the other recommendations, we would be particularly concerned about the recommendation that there is a 2 year lead-in time after the legislation is passed and signed. Auto-enrolment needs to happen as quickly as possible and has been discussed and debated for decades. The implementation already allows for a 10 year phasing in of the contributions and it is difficult to see what would be achieved by a further lead-in period. A summary can be read here with the the full report here.
Tim Duggan, Assistant Secretary General, Department of Social Protection, will be one of our speakers at the IAPF Summer Conference. He will give an update on Automatic Enrolment. Bookings are open here.
Revenue Pensions Manual
Revenue has updated the Pensions Manual, please see: 063/23