Wednesday, March 3, 2010

New Mandatory Pension

News Scource-RTE.IE: The Government is to introduce a new mandatory or 'auto-enrolment' pension scheme in four years' time as part of a major restructuring of pension provision in the State. Under the New National Pensions Framework, the state pension will remain the basis of the pension system in Ireland - with the Government undertaking to preserve its value at 35% of average earnings.

However, in future, workers aged over 22 earning above a certain income threshold will automatically be enrolled in a new supplementary pension scheme to provide additional retirement income. This will happen unless they are already in their employers' scheme which provides higher contribution levels or is a defined benefit scheme. Employees would contribute 4%, with the Government and the employer providing matching contributions of 2% each - making a total contribution of 8%. Workers may opt out of the supplementary scheme - but it remains mandatory for employers. You can Download the full Framework Document Here

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