Concerns over new auto enrolment pension scheme for Louth community organisations

How will community and not for profit organisations in Louth, who rely on funding from various government departments to pay staff doing vital work in the county, find the cash for the government’s new auto enrolment pension scheme which starts in January?

That was the question posed by Louth TD Ruairí Ó Murchú who used speaking time in Leinster House last week to highlight the issue.

Deputy Ó Murchú said he was talking of organisations where the State that supplies the money, such as the Department of Rural and Community Development and the Gaeltacht, which supplies money to Pobal and many other government departments who fund staff at the various organisations.

He said: “We have The House on Cox's Demesne, which does everything from breakfast clubs right through to probation services; the Redeemer Centre, which does a huge amount of work; Mid Louth Youth Services; Outcomers and places like Muirhevnamor Community Centre. We could probably rhyme off a whole pile of organisations. 

“They are getting different answers from every Department in relation to this, but at the end of the day, the State is what supplies the money.

“Whatever about the first year, it is 1.5% on a one-for-one basis and based on gross earnings, but that is years one to three. In years four to six, it jumps to 3%. In years seven and nine, it is 4.5%. After ten years, it goes to 6%. 

“Therefore, there will be monetary issues straight away, but they can get significantly worse. There needs to be a greater level of communication. 

“The Minister has already supplied a parliamentary question answer to me which said: “There has also been an extensive communication campaign to inform people that the scheme will commence on 1 January 2026. 

“STherefore, employers have been given a substantial lead-in period to budget appropriately for its introduction, including through budget negotiation with a sponsor, where appropriate.

“The Minister (for Social Protection) might engage with his own Department of rural and community development and those others to make contact with these organisations because they are very worried about this”.