In September 2025, Ireland will usher in a transformative change for workplace pensions with the rollout of auto-enrolment and the introduction of the My Future Fund. These initiatives aim to address the pension savings gap, ensuring that more employees have access to retirement benefits. While this marks a significant milestone in employee financial well-being, it brings critical considerations for HR professionals to navigate.

The introduction of auto-enrolment in Ireland presents both challenges and opportunities for employers from a HR perspective. By conducting a thorough workplace assessment and preparing well in advance, organisations can ensure compliance and minimise disruption. Clear communication, careful planning, and policy updates will be essential in making this transition as seamless as possible for both employers and employees.

This article explores the HR implications of auto-enrolment and offers actionable steps to prepare for a smooth transition.

Overview of Auto-Enrolment and My Future Fund

Auto-enrolment is a mandatory workplace pension system that will require employers to enrol eligible employees into a pension scheme.

Under this scheme:

Employees aged 23–60 earning over €20,000 annually will be automatically enrolled.

Both employers and employees will contribute, with the government providing additional top-ups through the My Future Fund, designed to encourage long-term savings.

Contributions will start at a modest rate and gradually increase over ten years to minimize the financial burden.

The My Future Fund acts as a centralised retirement savings vehicle, simplifying administration while ensuring portability for employees changing jobs.

HR Considerations for the 2025 Rollout

1. Compliance and Legal Readiness

Implications:

Non-compliance with auto-enrolment requirements could lead to penalties and reputational damage.

Actions:

• ¨Employers must familiarise themselves with legislation, ensure contracts are updated, and establish processes to meet enrolment deadlines and reporting obligations.
• ¨Consider any existing pension schemes in place.
• ¨Updates to the Contract of Employment should include provisions relating to pension contributions, employee obligations and any other relevant conditions with respect to the Auto Enrolment scheme.

2. Administrative Adjustments

Implications:

Auto-enrolment will introduce new administrative tasks, from identifying eligible employees to managing contributions and opt-outs.

Actions:

• ¨Upgrade payroll systems to automate pension calculations and deductions.
• ¨Appoint a dedicated team or designate roles to oversee pension administration.

3. Financial Planning for Employers

Implications:

Employer contributions will increase payroll costs.

Action:

• ¨Assess the financial impact of contributions and adjust budgets accordingly.
• ¨Explore strategies to integrate pension benefits into total reward packages to maximize value for employees.
• ¨Integrate information as overall Compensation & Benefits Strategy.

4. Employee Engagement and Communication

Implications:

Employees may have questions about contributions, fund management, and opting out. Poor communication could lead to dissatisfaction or mistrust.

Action:

• ¨Create a comprehensive communication plan, including workshops, FAQs, and interactive sessions.
• ¨Ensure employees are adequately informed of changes relating to them specifically to ensure compliance with legislation and best practice.
• ¨Highlight the benefits of saving for retirement and government top-ups to reinforce the value of participation.
• ¨Communicate as a positive news story.

5. Talent Attraction and Retention

Implications:

Competitive pension offerings are a vital part of employer branding.

Action:

• ¨Position auto-enrolment as a key employee benefit, enhancing your organisation’s value proposition.
• ¨Consider additional voluntary employer contributions for high-value talent.

6. Monitoring and Evaluation

Implications:

Ongoing compliance requires robust monitoring systems to ensure employees are enrolled correctly and contributions are made on time.

Action:

• ¨Regularly audit pension processes to identify gaps.
• ¨Collaborate with pension providers to access timely data and compliance updates.
•  Identify appropriate KPIs.

Strategic Opportunities for HR

The rollout of auto-enrolment offers more than compliance challenges; it provides a chance to enhance workplace culture and benefits.

Key opportunities include:

1. Boosting Financial Well-being: Strengthen employee satisfaction and loyalty by promoting the long-term advantages of saving through My Future Fund.

2. Enhancing Employer Branding: Differentiate your organisation by embracing the changes proactively and positioning yourself as a champion of employee well-being.

3. Future-Proofing HR Systems: Use this transition as an opportunity to modernise payroll and benefits systems, paving the way for greater efficiency.

Steps for HR to Take Now

1. Understand the Framework: Stay informed about the latest updates on auto-enrolment and My Future Fund policies.

2. Engage Stakeholders: Involve finance, payroll, HR, and legal teams early to align strategies.

3. Collaborate with Experts: Work with pension advisors and service providers to simplify implementation.

4. Prepare for Change Management: Educate employees and leadership teams about the benefits and obligations under the new scheme.

5. Communication: Communicate the plan in advance and ensure to update employees regularly.

6. Workplace Assessment: Employers should complete a Workplace Assessment to identify all employees who will, or could be, affected by this:

• Review demographics of current workforce
• Review current contractual obligations in place along with review of retirement policy, if any
• Adequately informing and consulting with employees
• Aligning with legislation and best practices
• Evaluating costs
• Considering existing pension schemes
• Additional resources for Administration/Training/HR & Payroll
• Reviewing and updating key documentation:
  • Contracts of Employment
  • Policies & Procedures:

    -  Absence Management
    -  Annual Leave
    -  Probation
    -  Recruitment
    -  Performance Management
    -  Return to Work
    -  Exit Interview
    -  Retirement

Conclusion

The introduction of auto-enrolment and My Future Fund in Ireland marks a new era for workplace pensions, presenting both challenges and opportunities for HR professionals. By proactively preparing for the changes and embracing them as a strategic advantage, HR teams can not only ensure compliance but also enhance their organization’s reputation and employee satisfaction.

With the September 2025 deadline approaching, the time to act is now. Start planning, communicate effectively, and position your organisation for success in this new pension’s landscape.

How can RBK help?

If you wish to discuss any aspect of the implementation of Automatic Enrolment Retirement Savings System - “My Future Fund” within your business, please reach out to our HR Solutions and Pensions Team:

• Yvonne Clarke, HR Solutions Manager - (090) 6480600
• Patrick Keegan, Wealth Management Director - (01) 644010
• Mary Byrne, Payroll Solutions Manager - (090) 6480629

Disclaimer: While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, RBK do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.