The long-awaited plan to force workers to pay into the Pension

  • The long-awaited plan to force workers to pay into the Pension
    Independent.t. E.
    Workers will be forced to participate in the new pension scheme in four years, the Minister for social protection Regina Doherty insisted.
    https://www.independent.ie/business/personal-finance/pensions/longawaited-plan-to-force-workers-to-pay-into-a-pension-37243240.html
    https://www.independent.ie/incoming/article37243283.ece/0b488/AUTOCROP/h342/31Regina%20Doherty1%20M%20Read-Only.jpg

  • Email

Workers will be forced to participate in the new pension scheme in four years, the Minister for social protection Regina Doherty insisted.

The alternative is that thousands of workers will see their standard of living will drop dramatically in retirement, she said.

The scheme will see workers contributing to 6PC of their salary, with this amount matched by employers. The state will contribute €1 for every € 3 to work.

Two decades after the automatic enrolment system, at first muffled, Ms. Dougherty said the only thing that could stop this “smasher”.

Automatic enrollment will be phased in until 2022. It is aimed at low-and middle-income who do not have private pensions. It will be applied to 410,000 workers.

Details about how much delay, automatic enrollment can work was presented by Ms. Doherty, who promised that there will be no more delays delivery of the new pension system.

The government is considering a Retirement plan for low-and middle-income for 21 years.

It was supposed to be introduced two years later, but Ms. Doherty has promised that it will be four years.

Less than half of all employees have occupational or private pension to Supplement the state pension. Almost all public sector workers have an occupational pension.

However, only one third of private sector workers have personal pensions. It is about 900 000 employees.

The government is concerned that many of these workers will face poverty in retirement.

The latest proposal for the new auto-rate scheme defines how such a scheme might work.

The public was invited to respond to what is being called “project proposal”, setting out the mechanics of how the new scheme will work. Sentence outline where you specify settings for the people who were invited to shoot them down or agree with them.

Automatic enrollment will be phased in until 2022 and is aimed at low-and middle-income who do not have private pensions.

Ms. Doherty said that Ireland was one of only two countries in the framework of the Organization for economic cooperation and development (OECD) countries with no mandatory pension system.

Read more: questions and answers: who is this, and it will work?

“It is becoming more apparent that the majority of Irish workers are not saving, or even in old age,” she said.

“Many people will face a serious decline in their living standards when they retire – falling incomes, they clearly do not want.”

The Irish Congress of trade unions (ICTU) welcomed the detailed proposals on how the new scheme may be published.

Dr. Laura Bambrick, MKP, it is necessary punishment under the law to ensure that workers were not prompted to opt out of the scheme by unscrupulous employers attempting to classify them as self-employed.

Jerry Moriarty, Irish Association of pension funds, which represents the Trustees, said contributions of employees at 1pc of salary of the each. But it comes with 6pcs each after six years.

“This is a very aggressive and likely to have a significant impact on the economy,” he said.

He said that the government proposes to create a Central body which will collect contributions from employers and to grant pension to workers who don’t want to choose.

But it’s unclear how much it will cost and why.

Ms. Doherty described himself as “very lucky” to be a Minister who should act in two decades to talk about pension reform.

“We have an automated registration system for the Irish people. Not because I say it is good, but Ministers, as far back as 20 years thought it was. We are in the end game of this process,” she said.

The Minister said that the only way the plan could be derailed if there is a “smasher” between now and 2022.

On the question of the cost of technology required to operate the system auto-reception, Ms. Doherty said that their firm is worth more.

“Might need 18 months to develop it systems capable of interacting with the processing center, registered providers and hundreds of thousands of people who are going to do,” she said.

Online Business Classes