Proposals for 800,000 private sector workers to be enrolled in a pension expected to be approved by Cabinet

Minister for Social Protection, Heather Humphreys, will formally seek Cabinet approval for the Automatic Enrolment Retirement Savings System Bill. Picture: Sam Boal/Collins Photos

Proposals that will see 800,000 private sector workers automatically enrolled in a pension are expected to be approved by Cabinet on Wednesday.

Minister for Social Protection, Heather Humphreys, will formally seek Cabinet approval for the Automatic Enrolment Retirement Savings System Bill.

The model is similar to the old scheme – meaning the employee makes a contribution that is matched by their employer and there is a further top up from the State.

For example, using someone earning the national average wage of just under €45,000 per year and saving continuously for 40 years at the full contribution rate of 6% of their gross pay, under automatic enrolment (AE), they would end up with a savings pot of just under €750,000.

All employees who are not already in an occupational pension scheme and who are aged between 23 and 60 and earning over €20,000 across all of their employment will be automatically enrolled.

There will be provisions in the legislation to allow workers to opt out should they wish. It is expected the Bill will start its passage through the Oireachtas when the Dail returns after Easter.

It is understood Ms Humphreys wants to have the Bill enacted as quickly as possible so that that the new system can commence and first contributions to AE can start in January 2025.

Further and Higher Education Minister Simon Harris and Housing Minister Darragh O’Brien will seek Cabinet approval to ensure student-specific accommodation contracts are confined to the academic year.

A number of private student-specific accommodation providers have moved exclusively towards a 51-week occupancy model. While there may be a market for 51-week leases among some members of the student population, it is not desirable or affordable for the vast majority of third level students and their families. The Ministers will seek legislative amendments to the Residential Tenancies Act (RTA) 2004-2022 to come into force prior to the new academic year commencing. Mr Harris has also written to all relevant local authorities seeking an urgent assessment of the planning permissions provided and appropriate responses.

Transport Minister Eamon Ryan will look for Cabinet approval for a new draft transport strategy which aims to manage and reduce congestion.

The new Demand Management Strategy prioritises the roll out of measures in urban areas first where there is greater public transport, walking and cycling availability.

By re-allocating and re-imagining road space, it aims to improve journey times for car drivers, public transport users, business and freight, leading to improvements in local air quality and reducing stress.

Health Minister Stephen Donnelly will update cabinet on the 2024 waiting list action plan.

The rate of additions to the waiting list in 2024 is projected to further increase beyond the levels experienced last year. The rate of additions in 2023, was 8% higher than targeted in the 2023 plan and over 12% higher than the rate of additions seen in 2022. For 2024, the HSE are projecting that the rate of additions will be approximately 5% higher than experienced in 2023.