Towards the end of last year, just over a week before the launch of pension auto-enrolment, the Government announced a new set of regulations regarding company pension schemes and eligibility for My Future Fund.
What are the Automatic Enrolment Retirement Savings System Regulations 2025?
On 24 December 2025, the Minister for Social Protection, Dara Calleary, announced a new set of requirements that alternative pension schemes, such as PRSA and occupational pension schemes, must satisfy in order for the participating employees to be considered exempt from pension auto-enrolment. These requirements came into effect on 1 January 2026.
In other words, in order for an employee to be exempt from being automatically enrolled in My Future Fund, the company pension scheme must meet certain standards. This means that the current contribution rates set out in the My Future Fund scheme will become a minimum standard for all other pension schemes processed through payroll.
What are the new standards for company pension schemes?
The new regulations aim to ensure that pension arrangements other than My Future Fund are at least as favourable for the employee as the current rates under the auto-enrolment scheme.
For example, where a business has implemented a defined occupational pension scheme, the new standards require that total pension contributions (from both employer and employee) amount to at least 3.5% of the employee’s salary, in order for that employee to be exempt from pension auto-enrolment. Employer contributions must be at least 1.5% of the employee's gross pay.
In the case of defined benefit schemes, these may be considered to be exempt from the new standards.
What happens if the company pension scheme does not meet the new standards?
The Government has emphasised that in cases where a pension scheme does not meet the new exemption standards, the focus will be on bringing the scheme up to standard rather than on imposing penalties.
However, if an employer fails to bring the scheme up to standard, penalties may be imposed.
What should employers do now?
While the launch date for pension auto-enrolment has now passed, employers should continue to focus on maintaining compliance with the My Future Fund pension scheme. If employees are on an alternative company scheme, it’s important to ensure that the scheme meets these new exemption standards.
Employee contracts, handbooks and other HR documentation should be reviewed and revised on a regular basis to ensure compliance with the new scheme, and employers should ensure that they continue communicating clearly with their employees.