knowledge 3 January 2025 |

Pensions & Incentives Top 10 News Round-up

1. Commencement of the Auto-Enrolment System in Ireland

After twenty-five years of false starts, auto-enrolment look set to come to Ireland in 2025. The Irish auto-enrolment system (to be known as “My Future Fund”) is due to commence on 30 September 2025. Our briefing sets out what this means for employers and pension schemes alike. 

2. DORA for pension schemes

DORA, which is intended to consolidate and upgrade information and communication technology (ICT) risk requirements in the financial sector, will apply in full from 17 January 2025. Trustees of occupational pension schemes will be responsible for ensuring pension scheme compliance with DORA. We have considered what this means for pension schemes in the above link.

3. High Court judgment: Vodafone Ireland Limited v Farrell & Ors

This recent Commercial High Court judgment held that the Vodafone Ireland Pension Plan provided for guaranteed pension increases for certain members. Please note that this judgment has been appealed.

4. Revival of the SAYE scheme

With the announcement of AIB as a new licensed savings carrier for the Save As You Earn (“SAYE”) scheme, this popular share scheme has now made a return to the Irish market. To learn more about the scheme and whether it would be a fit for your business, read our overview.

5. State Pension Age flexibility

From 1 January 2024, employees have an option to defer drawdown of the State pension until any age between 67 and 70 in return for an actuarially increased pension at a later drawdown date. We’ve examined the impact of this change on pension schemes in the above link.

6. Smooth Moves: Guidance on Master Trusts moves for Employers and Trustees published

The Pensions Council published new guidance during 2024 setting out some practical steps for employers and trustees when transitioning to a master trust arrangement. Take a look at our summary and thoughts in our recent briefing.

7. Report on the Standard Fund Threshold published by the Department of Finance

The Government has announced that it will increase the standard fund threshold (i.e. the capital value of a person’s pension benefits before which particular tax rates apply) from €2 million to €2.8 million over a four-year period, and pension benefits above the threshold would be taxed at 40% thereafter.

8. Report on the Taxation of Share-based Remuneration published by the Department of Finance

A report published by the Department of Finance includes recommendations for further uptake and improvement of share-based remuneration schemes in Ireland. We’ve picked out the key headlines in our briefing, with some of our thoughts thrown in for good measure.

9. WRC decision: State must cover shortfall in Protim Abrasives Ltd pension scheme

The WRC has ruled that the State must pay €2.8 million into a liquidated company’s pension scheme. The State’s liability was calculated on the basis of actuarial calculations presented to the pension scheme trustees in 2009. This ruling is significant because it confirms that the State is required to underpin certain shortfalls in workers’ pension schemes where a business is insolvent. 

10. New limit to be imposed on PRSA contributions

The Finance Act 2024 has imposed a contribution limit on employer PRSA contributions of 100% of the employee’s or business owner’s earnings for the year. Industry experts have been critical of the proposed limit on employer PRSA contributions on the grounds that it penalises business founders and has further increased the complexity of the Irish pensions system.

If you have any queries, please get in touch with a member of the Pensions and Incentives Group.