Auto-Enrolment for GP Employers

Employing a team brings responsibilities including helping your staff save for retirement. Ireland’s auto-enrolment pension scheme, MyFutureFund, means GP practices must account for pension contributions for eligible employees.

Which Employees Are Covered?

Your employees are automatically enrolled if they:

• Are aged between 23 and 60.
• Earn €20,000 or more a year across all employments.
• Do not have a qualifying pension arrangement through payroll.

This includes eligible employees on probation and those on casual, seasonal or part-time contracts.

How Does the Scheme Work?

• Employee and employer contributions: Initial contributions are 1.5% of gross pay from the employee and 1.5% from the employer. Each rate increases by 1.5 percentage points every three years, reaching 6% each from year 10. Contributions apply to earnings up to €80,000 a year.
• State top-up: The State adds €1 for every €3 the employee contributes.
• Investment choices: The scheme does not provide personalised investment advice. Employees can use the default investment strategy or select from the available alternatives themselves. Employers are not responsible for providing investment advice.
• Opt-outs and suspensions: Employees can opt out during specified periods after an initial mandatory participation period, but eligible employees are re-enrolled at regular intervals. Employees can also suspend contributions, subject to the scheme’s rules.
• Changing jobs: Pension savings follow the employee when they move jobs.

 

Already Have a Pension Arrangement for Staff?

An existing workplace pension may qualify for exemption if contributions are paid through payroll and the arrangement meets the required minimum standards. Simply offering staff access to a PRSA or an employee having a personal pension outside payroll, does not automatically provide an exemption.

For a defined contribution pension or PRSA to qualify, current minimum standards require total contributions of 3.5% of gross pay, including an employer contribution of at least 1.5%, subject to the applicable annual caps.

 

What Should You Do as a GP Employer?

• Register: Ensure your practice is registered on the MyFutureFund employer portal.
• Review existing arrangements: Check your staff pension arrangements and contribution levels against the exemption requirements.
• Check payroll: Ensure your payroll processes support your obligations.
• Plan for costs: Budget for employer contributions and future increases.
• Inform your staff: Give employees clear information about their pension arrangements. You must notify employees in writing when they are first enrolled and confirm their enrolment date.

 

How IMO Financial Services Can Help

IMO Financial Services can help you compare MyFutureFund with an employer-sponsored PRSA and assess the options for your practice and employees. We are also very happy to answer any questions you might have.

 

Contact us at imofs@imo.ie to arrange a review.