ISME says small firms cannot afford mandatory pensions

The Irish Small and Medium Enterprises Association has claimed the introduction of mandatory pensions could cause its members to lay off thousands of workers.

Mandatory pension contributions for employees and employers are among the options being considered as part of government proposals on how to deal with Ireland's pensions 'time-bomb'.

However, in an official submission on the matter, ISME says small business cannot afford to make pension contributions in the current economic climate.

It wants the Government to introduce an SSIA-style pension initiative instead.