Auto-Enrolment: We have heard lots about the new initiative by the Government to help employees who do not have pension schemes through their work. As we all know, the State contributory Old Age Pension will not be sufficient for a comfortable retirement. This is why so many people have savings, either through Personal Pensions, PRSAs and Occupational Pension Schemes, which are provided by their employers.
Picture: Heather Humphreys, Government Minister responsible for Auto-Enrolment (Credit: RTE)
Action: As part of a plan to include those who have not set up their own pensions, and to include employers who do not have a pension scheme for their staff, the Government has started the Auto-Enrolment Pension Scheme. This will capture all employees over 23 years old who earn more than €20,000 per annum.
Tax Relief: The scheme offers a government top-up of €1 for every €3 of after-tax income from the employee, along with a mandated €3 from the employer. This is starting at 1.5% of income, rising to 6% (from both Employees and Employers) in time. The government contribution is equivalent to a Tax Relief of 25%, which in our view is a good boost for 20% Taxpayers, but not for 40% taxpayers.
In an environment where 40% taxpayers seem to be carrying the burden of many benefits to the greater population, it looks to us that we will also be subsidising the pension benefits of the lower rate taxpayers also.
There is an Alternative: We are encouraging Employers to have private Occupational Schemes set up PRIOR to the launch of Auto-Enrolment. This will remove the company from being forced to implement an Auto-Enrolment scheme for its entire workforce. (*non-members of a Private Company Pension Scheme may still be liable to join the Government Scheme). We at Clevermoney are making arrangements for access to very cost- and time-effective Pension Schemes for small and medium sized companies, including Master Trusts and PRSA’s.
With these Schemes, 40% taxpayers will continue to receive tax relief at 40% where they qualify. This will mean for a contribution of €100 into a private Company Pension, it will only cost the employee €60, where the same figure would be €75 in the case of Auto-Enrolment. If an employee paid in €60 equivalent net pay into both schemes, the difference at retirement (for a 35yo, retiring at age 65, and based on a growth rate of 3.5%) would amount to nearly €30,000. Imagine how big the difference would be with a larger payment? We cannot allow the Government, and our inaction, to short-change our valuable staff.
Timescale: As nearly 35% of the Irish Workforce of 2.2 million (figure excludes self-employed), this will mean a LOT of work. Both for the Auto-Enrolment Scheme, but especially for those Employers who want to do right for their important staff and ensure they have access to the better schemes for their valuable staff.
如何行动：请立即联系您的Clevermoney顾问，安排预约以解决问题。https://clevermoney.ie/contact
爱尔兰自动注册制度——您需要了解的内容：
爱尔兰约有75万名雇员（不含自雇人士）年收入超过2万欧元，却未加入公司养老金计划。
The Government top-up to the scheme will be equivalent to Tax Relief at 25% (€1 for every €3 of after tax income deducted from the employee)
若您属于40%税率纳税人，或雇佣的员工属于40%税率纳税人，则通过自动加入养老金计划将无法享受40%的税收减免。
The Government sponsored Auto-enrolment Scheme is set to begin in the second half of 2024.
ALL employees earning over €20,000pa and aged over 23 will be automatically included in Auto-Enrolment. Employees will be able to opt out individually but will be automatically re-enrolled again in 2 years’ time.
在自动加入计划启动前已是计划成员的雇员无需变更。那些选择不加入公司计划的雇员很可能会被纳入自动加入计划，不过他们可享受为期两年的退出期。
Employer Contributions will start at 1.5% of employee salary, and is set to rise to 6% of salary over time.
根据爱尔兰养老基金协会的数据，企业养老金计划的平均年度缴费额为员工薪资的11.1%，其中员工缴纳5.7%，雇主缴纳5.4%。普遍认为该数额不足以保障舒适的退休生活，尤其对于晚年才加入计划的人群而言。
以下是政府网站的链接，您可在此获取更多关于自动加入养老金计划的信息：https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub/#:~:text=What%20auto%2Denrolment%20is,state%20pension%20when%20they%20retire.