The Irish government plans to introduce mandatory pension scheme automatic enrolment for all employees who meet minimum qualifying criteria. The current plan is for this to be introduced in January 2022. This will require a fundamental change to the pension schemes of some companies and could increase the cost of pension provision significantly. Willis Towers Watson is currently working with companies to understand the impact of these potential new requirements.
Many companies want to understand how this new requirement will impact their business and want to plan in advance so that they are prepared for the introduction of auto enrolment.
Similar legislation was introduced in the UK and Willis Towers Watson consultants worked with many companies to implement the solutions required to meet the legislation. Our Irish team have worked closely with their UK colleagues to develop expertise and insights in this complex area so we can assist our clients. The key areas that we are advising clients on are:
- Understanding the financial impact to the business of auto enrolment
- Considering the design of the pension offering to ensure it meets the Auto Enrolment requirements
- Consideration of the total reward offering for employees when this is introduced
- Consideration of the impact on member benefits
- Consideration of payroll complexities of having to enrol and allow members opt out of pension scheme provision.