SME EMPLOYERS – Time to review the “My Future Fund”

Auto-enrolment is one of the most significant changes to employer payroll responsibilities in recent years. Ongoing compliance is just as important as the initial implementation.

After 5 months of MY FUTURE FUND, Ireland’s Auto-Enrolment Retirement Savings Scheme, its time for employers to review their payroll processes and ensure that they remain compliant with their ongoing obligations.

The implementation of the scheme was achieved at the beginning of the year and now maintaining compliance requires continuous monitoring. From employee eligibility to contribution calculations, regular reviews will help employers to ensure the scheme is operating as intended.

Employee Eligibility Review

Employee circumstances can change – new hires, salary increases, and changes in employee age can result in additional workers becoming eligible for auto-enrolment. Regular review of processes are required to ensure that the employees are identified who now meet the eligibility criteria.

Check Payroll Processes

Accurate payroll administration remains one of the most important aspects of auto-enrolment compliance. Now is a suitable time to review:

• Contribution calculations
• Payroll deductions
• Employer contribution payments
• Employee records and reporting procedures
• Identifying and correcting issues early will prevent complications later in the year.
• Understand Employee Opt-Outs

Should some employees choose to opt out of the scheme after being enrolled employers should ensure they understand the relevant procedures and maintain accurate records of all opt-out requests.

Budget for Ongoing Contributions

Auto-enrolment is a new cost  for many SME employers. Reviewing the impact of employer contributions on budgeting and cash flow will help businesses plan effectively for 2026 and beyond. As workforces grow and employee earnings change, contribution costs will also increase.

Review Existing Pension Arrangements

Businesses that already offer pension schemes should periodically review their arrangements as well as their auto-enrolment obligations. This review will help existing pension structures to continue to meet business and employee needs and obligations and avoid unnecessary duplication.

Keep Employees Informed

Employees may have questions about how the scheme works, their contribution levels, and the benefits of long-term retirement savings. Provide clear communication and support to help employees better understand the scheme and encourage engagement with their retirement planning.

 

MF 05/06/26.