Auto-Enrolment and MyFutureFund: Is Your Company Pension Compliant?

What employers need to know from 1 January 2026

Auto-enrolment, known as MyFutureFund (MFF), has been introduced from 1 January 2026. Its purpose is to ensure employees who are not already saving for retirement are supported through a structured, payroll-based pension system.

Crucially, the introduction of MyFutureFund does not mean that existing occupational pension schemes or PRSAs are automatically compliant. Specific minimum contribution levels now apply where an employee is already a member of a pension arrangement and these must be met in order for that employee to be exempt from auto-enrolment in the State scheme.

At UHY Farrelly Dawe White, we are already working with employers who assumed their current pension or PRSA arrangements would be sufficient. In many cases, those arrangements need to be reviewed to ensure they meet the new minimum standards.

For employers, the key issue is not how MyFutureFund operates, but whether their existing or new pension arrangements meet the minimum contribution requirements set out under the auto-enrolment regulations. Where they do not, employers may need to adjust contributions or enrol affected employees into MyFutureFund to remain compliant.

Minimum standards for exemption

Minimum standards have been developed by NAERSA in consultation with the Pensions Authority. These standards determine whether an occupational pension scheme or PRSA can be relied upon to exempt an employee from MyFutureFund.

The intention is clear. Pension arrangements outside MyFutureFund must be at least as favourable for the employee as participation in MyFutureFund at the introductory contribution rates.

As with many regulatory changes, these standards are likely to evolve further over time.

Defined Contribution schemes and PRSAs

For defined contribution pension schemes and PRSAs paid through payroll, the following minimum contribution levels must be met.

Contribution type	Minimum requirement
Employer contribution	The lesser of 1.5 percent of gross pay or €1,200 per annum
Total contribution (employer and employee combined)	The lesser of 3.5 percent of gross pay or €2,800 per annum
Earnings threshold	Based on an €80,000 annual earnings cap, in line with MyFutureFund

These contribution caps reflect the structure and limits that apply under MyFutureFund itself.

Defined Benefit schemes

Defined benefit schemes are treated differently.Exemption is granted where the scheme provides a long-term retirement benefit linked to continuing employment, rather than being assessed on contribution matching in the same way as defined contribution arrangements.

What this means for employers

Employers now need to step back and review existing pension and PRSA arrangements to confirm whether the required minimum standards are met.

Where an employee is already contributing to a pension or PRSA, a total minimum contribution of 3.5% of qualifying earnings must be paid. The employer is required to contribute at least 1.5%, with the remaining 2% to be funded by either the employee, the employer, or a combination of both.

For example, a PRSA offering a 1 percent employer match may not meet the standards for employees contributing at lower levels (unless the monetary minimum amounts are reached).

Where a shortfall exists, employers must determine how it should be addressed. Options may include increasing employer contributions, adjusting employee contribution structures, or amending the terms of the existing scheme.

Any changes affecting employee contributions may have contractual or employment law implications and should be approached carefully, with appropriate professional advice.

What do employers need to do now?

Employers who expected their employees to be exempt from auto-enrolment should act now.

This means assessing whether existing pension or PRSA arrangements meet the required standards, particularly where low contribution levels are permitted. Where arrangements fall short, changes to contribution levels or scheme rules will be required to qualify for exemption from MyFutureFund.

At UHY Farrelly Dawe White, we work closely with employers who we provide payroll services to, to assist them in the review of their pension arrangements and understanding their responsibilities

under the auto-enrolment framework.

Early review reduces risk, avoids duplication, and provides confidence that your pension arrangements are fit for purpose.

Contact our team of payroll experts to find out how they can assist with your payroll needs to allow you focus on you and your business.

Contact us!