What Is Pension Auto-Enrolment? | HR Glossary | BambooHR
A scheme automatically enrolling eligible workers into a retirement savings plan.
Auto-enrolment is a system that automatically places eligible employees into a workplace pension, with contributions from the employee, the employer and often the State, unless the employee actively opts out. It is designed to widen pension coverage among workers who might not otherwise save.
Ireland is introducing its own auto-enrolment scheme, branded 'My Future Fund', with phased contributions and a State top-up, marking a major change for employers who previously offered no occupational pension. The UK has operated auto-enrolment for over a decade, providing a useful preview of the compliance and payroll demands involved.
Employers must identify eligible staff, deduct and remit contributions accurately, manage opt-outs and re-enrolments, and communicate clearly. Payroll and HR systems need to be configured to handle the new deductions and reporting.
