Ibec, the group which represents Irish business, has called on Government to ensure that business is closely involved in the design and governance of the proposed auto enrolment occupational pension scheme, if the new scheme is to gain the confidence of employers and employees.
Commenting on the Government’s publication today of the ‘Roadmap for Pensions Reform, 2018-2023’, Ibec CEO, Danny McCoy, said:
“For many businesses, the introduction of auto enrolment will be a major administrative undertaking, so there must be a clear roadmap and realistic lead-in time. Given the potential impact on labour costs, Government must also give a firm commitment that there will be no further cost increasing measures during the roll-out period.
“Certainty and effective design will be critical elements in developing a system that encourages personal ownership of pension savings by individuals and has public confidence. The reforms should also preserve the substantial level of private sector provision, as it can be of a higher value than the new statutory minimum.
“In recent years our favourable demographics, when compared to most developed countries, have allowed us to put our pensions problems on the long finger but this grace period is coming to an end. If this issue remains unresolved into the medium term, it risks leaving a generation with substandard pensions coverage and an unsustainable bill for the state. Given Ireland’s remarkable economic recovery, we now have a window of opportunity to secure the financial and social sustainability of the pension system, with minimum disruption to the wider economy.”