ELECTRIC.IE • The Magazine & Website for the Irish Electrical Industry • 25 I nLdE Du sVt Ar yNNC eE w s MyFutureFund Goes Live: What Ireland’s Auto-Enrolment Pension Means for Electrical Employers and Employees Ireland’s auto-enrolment pension system, MyFutureFund, is now officially live, with the National Automatic Enrolment Retirement Savings Authority (NAERSA) beginning to collect contributions from today. While pensions may not traditionally sit at the top of the agenda for the electrical sector, the launch marks a significant shift for thousands of electrical contractors, SMEs and their workforce across the country. MyFutureFund is designed to address a long-standing gap in retirement provision. More than 760,000 employees in Ireland are currently not actively contributing to a workplace pension or PRSA through payroll. Many of these workers are employed in sectors dominated by small and medium-sized businesses, including electrical contracting, maintenance, and services. Over time, the Government expects the scheme to grow to cover millions of employees. From an employer perspective, the headline message is simplicity. Unlike traditional occupational pension schemes, MyFutureFund removes most of the administrative burden. NAERSA takes responsibility for enrolling eligible employees, collecting contributions, managing investments and providing customer support. For electrical contractors already grappling with compliance, skills shortages and rising costs, this centralised approach is likely to be welcome. Minister for Social Protection Dara Calleary described MyFutureFund as “truly revolutionary”, highlighting that it allows employers to support their workforce’s long-term financial security without having to design or manage a pension scheme themselves. Contributions are shared between employee, employer and the State and will be phased in gradually to ease the financial impact. From 2026 to 2028, employees and employers will each contribute 1.5% of gross pay, with the State adding a further 0.5%. These rates will rise incrementally over the following decade, reaching 6% employee and employer contributions, plus a 2% State top-up from 2035 onwards. The scheme’s structure means relatively modest employee contributions can quickly add up. Using the Government’s example of a 25-year-old full-time worker on minimum wage, an employee contribution of €8.49 per week is matched by the employer, with the State adding a further €2.83. After fees, almost €19.30 per week is invested for retirement — more than double the employee’s own contribution before any investment growth. For employees in the electrical sector, many of whom may move between employers over the course of their careers, MyFutureFund also offers portability. All savings are the personal property of the participant, with no vesting period. Contributions and investment returns stay with the worker, regardless of job changes. The launch also coincides with the opening of the MyFutureFund participant portal. Using a verified MyGovID, employees can view contributions from themselves, their employer and the State, track investment returns, and manage their participation. Options include opting out at specific intervals, suspending contributions, or adjusting investment strategies. Workers who are not automatically enrolled — such as those under 23, over 60 or earning below the threshold — can also opt in voluntarily.
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