Auto Enrolment - how can IMO Financial Services help?

 

‘The long awaited and talked about advent of Auto Enrolment (AE) in Ireland is almost upon us – with Q3 2025 the date for its initial roll-out. The introduction of AE is essential for future pension provision in Ireland and for large swathes of workers, it will be a very important initiative.

 

As a practice owner and employer, you need to be aware of how AE is going to impact your business. This is going to directly affect your employees and your business – so now is the time to start planning what approach you will take.

 

What is auto-enrolment?

The objective of the AE scheme is to ensure that every worker will have access to a workplace pension to supplement the basic state pension. Some of the key features of AE are:

 

• Employees, aged between 23 and 60, earning over €20,000 per annum and not already contributing to a pension via payroll deduction, will be automatically enrolled into the new AE scheme.
• Employers will need to facilitate this and will be required to contribute to it.
• Initial contributions will be 1.5% of gross income from the employee and 1.5% from their employer.
• This amount will be increased on a phased basis over 10 years with 1.5% added every three years until a total 6% is reached from both the employee and employer.
• The pension will also be topped up by the State at 33% with employer and State contributions capped at €80,000 of earnings.
• No investment advice is provided so employees will need to make investment decisions by themselves.

 

 

As an employer, you will need to prepare for its introduction.

 

How can IMO Financial Services help?

IMO Financial Services have been studying the intricacies of the AE plan for the last number of years and can help with:

 

• Considering the pros and cons of establishing an employer sponsored pension plan versus contributing into AE.
• Advising what pension scheme product most fits the GP practice’s circumstances.
• Presenting to employees and assisting in the completion of paperwork.
• Providing support to GPs during the set-up of the pension scheme.
• Inviting employees to an annual review meeting.

 

Please contact us on imofs@imo.ie if you wish to explore this matter further with us.