Thousands of Kilkenny workers make first pension contribution under new scheme

After coming into effect on January 1, the new pension auto-enrolment scheme, known as My Future Fund, has seen nearly 800,000 workers make their first contribution this week.

The initiative will provide a pension plan for those not already involved in one at their workplace and aims to address the gap for people without provisions for retirement.

In figures announced by Minister for Social Protection, Dara Calleary TD, 13,184 workers in Kilkenny have been enrolled and are now set up with a pension plan.

The scheme covers those between the ages of 23 and 60 who are earning more than €20,000 per year with 1.5% of wages being deducted in the initial phase.

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This contribution is matched by employers and the Government also adds €1 for every €3 deducted from workers.

The employee contribution rate rises to 3% between year four and six after enrolment, 4.5% from year seven to nine and 6% after 10 years.

Workers who don’t wish to continue making contributions can opt out after six months, while those who don't meet the age or earning criteria for auto-enrolment can still choose to opt in.

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