Is the auto-enrolment system for employees only?

Gordanus

Registered User
Messages
663
Is this only for employees, or for self-employed too?
 
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Brendan Burgess

Founder
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48,321
It is for employees only.

There is no requirement for a self-employed person to have a pension.

So this is what will happen.

PAYE employees will continue contributing about 15% of their salary through Employee and Employer PRSI to the Social Insurance Fund.
PAYE employees will contribute 12% of their gross salary to their own pension fund.

The self-employed will contribute 4% of their salary to the Social Insurance Fund.

In ten or twenty years, the Social Insurance Fund will go bust and the "Contributory" OAP will be means tested. The employees who contributed almost 4 times as much as the self-employed will be told that as they have a private pension, they won't get the Contributory OAP. And the self-employed will get the OAP.

Mad stuff.

Brendan
 

NoRegretsCoyote

Registered User
Messages
4,551
In ten or twenty years, the Social Insurance Fund will go bust and the "Contributory" OAP will be means tested.
This is scaremongering Brendan. The SIF has been in deficit on and off a few times and the Exchequer had funded it. The SIF is not run on actuarial principles like in other countries. Very few people even know what it is.

When I draw the state pension (decades from now!) I fully expect it to be lower in real terms, harder to qualify for, and paid out from an age closer to 70. But I am very certain that a full working life will get a contributory state pension that is not means tested.

The self-employed will contribute 4% of their salary to the Social Insurance Fund.
I fully expect this rate to change in coming years, as it should. The self-employed get far too generous a deal with PRSI.
 

noproblem

Registered User
Messages
3,261
There isn't a politician in the country who knows where all this pension mullarkey is going, so well done Brendan on your vision. Remember though, it's your vision and somewhat alarmist being that you actually don't know either.
 

lff12

Registered User
Messages
624
This is scaremongering Brendan. The SIF has been in deficit on and off a few times and the Exchequer had funded it. The SIF is not run on actuarial principles like in other countries. Very few people even know what it is.

When I draw the state pension (decades from now!) I fully expect it to be lower in real terms, harder to qualify for, and paid out from an age closer to 70. But I am very certain that a full working life will get a contributory state pension that is not means tested.


I fully expect this rate to change in coming years, as it should. The self-employed get far too generous a deal with PRSI.
I agree RE self employed. They are a much softer target when times are hard, so yes, their rates are almost certainly going to be raised, especially now that they have so much more benefit.
 
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