Ireland. New compulsory pension scheme capped at €75,000
Private sector workers earning more than €20,000 a year will be automatically enrolled in the new scheme, which will see the Government contribute €1 for every €3 put into a State-run pension fund.
Workers will not be able to opt out of the system for at least nine months.
Employees earning more than €75,000 can contribute to the scheme but they will not be able to put any earnings above the salary cap into their pension pots.
Workers earning less than €20,000 will not be automatically enrolled in the scheme but will be able to opt in to the system. Just 35pc of the private sector work force currently have a private pension.
The auto-enrolment scheme, which is being spearheaded by Social Protection Minister Regina Doherty, will be introduced on a phased basis and is aimed at low- to middle income earners who do not have private pensions.
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