As Ireland prepares to roll out its national auto enrolment scheme, ‘My Future Fund,’ it’s more important than ever for employers to review and enhance their company pension plans. A strong pension strategy is no longer optional—it’s a competitive advantage that helps businesses attract top talent, retain staff, and demonstrate commitment to employee financial well-being.

At Donnelly Financial Planning, we help Irish businesses design, implement, and future-proof tailored pension solutions that align with both corporate goals and employee needs.

Why Should You Review Your Pension Plan Now?

As employer responsibilities evolve, so too should employee benefits. Here’s why a pension plan review is crucial in 2025:

Stay Competitive in the Talent Market
In today’s job market, employees look beyond salary. Offering a strong and flexible pension plan helps you stand out when recruiting and retaining high-performing talent.

Adapt to a Changing Workforce
Your team isn’t static—and your pension plan shouldn’t be either. Reviewing your offering ensures it meets the needs of a multigenerational workforce and reflects your company’s direction.

Show Long-Term Commitment
Providing more than the statutory minimum shows your employees that you care about their future. This builds trust, loyalty, and a stronger employer brand.

Improve Retention and Morale
When employees feel financially secure, they are more engaged and productive. A well-structured pension plan can significantly reduce stress and improve team morale.

Auto-Enrolment vs Master Trust: What’s Right for Your Business?

With the national auto-enrolment scheme due to begin soon, employers must understand how it compares to private pension alternatives like a Master Trust.

Here’s how the two stack up:

Feature	Auto-Enrolment (My Future Fund)	Master Trust Pension Plan
Contributions	Starts at 1.5% of gross salary for the employer and 1.5% of the gross wage for the employee (taken from the net salary), rising to 6% + 6% over 10 years. Salary capped at €80,000.	Flexible, allows lump sums and AVCs within Revenue limits.
Tax Benefits	No tax relief. State adds €1 for every €3 contributed.	Full marginal tax relief (20% or 40%), increasing with age.
Retirement Age	Tied to State Pension age (currently 66).	Flexible: set between 60–70. Early access from 50 in some cases.
Death in Service/Income Protection	Not included.	Can be added and customised for the company.
Investment Options	Limited (low, medium, high-risk funds).	Wide investment choice, including ESG and ethical options.
Advice & Support	None.	Full financial advice and plan support included.
Charges	Flat fee + 0.5% investment charge.	Negotiable, often includes additional value-added services.

Key takeaway:
Auto-enrolment scheme is a good start, but a Master Trust delivers greater flexibility and tax efficiency—perfect for forward-thinking employers determined to set the pace, not follow it.

Benefits of a Master Trust Pension Plan

Many Irish SMEs and corporate employers are choosing Master Trust arrangements because they offer:

• Tailored solutions to suit different company sizes and team structures
• Stronger employer branding and improved talent attraction
• Reduced administrative workload through streamlined governance
• Greater compliance confidence with enhanced reporting
• Higher employee engagement via access to professional financial advice

Act Now: Stay Ahead of Pension Legislation

Auto-enrolment is likely to become mandatory—waiting for legislation to change could leave you unprepared.

Taking action now allows you to:

• Make well-informed decisions free from the stress of looming deadlines
• Provide a pension plan that is more generous and flexible than the default state scheme
• Maximise tax benefits for both your business and your employees
• Design a benefits package that truly reflects your company’s culture and values

How Donnelly Financial Planning Can Help

We work closely with employers across Ireland to create effective, compliant, and forward-looking pension strategies.

Our services include:

• Comprehensive pension audits and plan reviews
• Design and implementation of Master Trust pensions
• Employee education and financial wellness programs
• Ongoing regulatory compliance and investment reviews
• Seamless integration with payroll and HR processes

Contact, Stephen at Donnelly Financial Planning to explore a tailored pension plan that secures the future for your team and your business.

Disclaimer:
This article is intended for general guidance only and does not constitute financial advice. Please consult a regulated financial advisor for tailored recommendations.

Donnelly Financial Planning Ltd is regulated by the Central Bank of Ireland.

Reference source: Department of Social Protection

Quick Glance

Future-Proof Your Company Pension Plan

A Bite-Size Employer Guide for Ireland

1. Auto-Enrolment by 2026

• Starts January 2026
• Employees aged 23–60 earning €20k+ are automatically enrolled
• Opt-out allowed after 6 months
• Fully portable across jobs

2. Review Existing Pension Schemes

• Ensure all eligible staff are included
• Convert voluntary membership to compulsory
• Update employment contracts and handbooks

3. Consider Master Trusts

• Cost-effective and IORP II compliant
• Outsourced governance and admin
• Lower cost per member

4. PRSA for Excluded Staff

• Offer Standard PRSA to short-term, part-time, or ineligible employees
• Legal contribution caps apply
• Notify employees and support payroll deductions

5. Tailored Pension Strategy

• Set clear retirement goals and funding plans
• Match risk profile to investment strategy
• Conduct regular reviews and adjustments

Summary Table

Pillar	Action	Why It’s Needed
Auto-Enrolment	Set up before Jan 2026	Maximise take-up, avoid penalties
Scheme Review	Include eligible staff, update docs	Legal compliance, fair treatment
Master Trusts	Evaluate transition feasibility	Lower cost, better governance
PRSA Access	Offer PRSA to excluded staff	Meet legal obligations
Strategy	Develop pension roadmap	Stay compliant and adaptive