LETTERKENNY has been announced as the headquarters of the new National Automatic Enrolment Retirement Savings Authority (NAERSA).

In line with the Government’s commitment to balanced regional development, NAERSA will be headquartered in Donegal, with an initial 35 permanent staff expected to grow as the scheme matures.

Recruitment is already underway for the CEO, senior staff, and Board members, with appointments to be made during Q3 and Q4 of 2025.

Welcoming the announcement, Pat the Cope Gallagher TD said: “This is a major win for Donegal.”

“Letterkenny will not only benefit from quality public sector jobs, but it will also play a leading role in delivering one of the most significant social reforms in a generation.”

“This is a landmark day not just for pension reform, but for Donegal and the northwest. After decades of discussion, we are finally delivering auto enrolment — ensuring that workers across Ireland can save for their future with support from their employer and the State.”

“I’m particularly proud that Letterkenny has been chosen as the home of the new Authority. This decision recognises the talent and potential of the region and will bring long-term, high-quality jobs to Donegal.

The announcement follows the passing of the Automatic Enrolment Retirement Savings System Bill in 2024, a landmark reform to address Ireland’s historically low levels of pension coverage.

Under the new scheme, workers will be automatically enrolled if they are aged between 23 and 60, earn more than €20,000 per year, are not already in an occupational pension scheme.

This means thousands of workers across Ireland will begin saving for retirement automatically, without having to take any action.

The system will be co-funded by employees, employers, and the State, with contributions phased in over the first 10 years.

Employees will begin by contributing 1.5 per cent of gross pay, increasing to 6 per cent by year 10. Employers will match employee contributions throughout.

The State will contribute an additional 0.5 per cent to 2 per cent, over the same period. By year 10, this will result in a total of 14 per cent of gross earnings being saved annually into each participant’s pension fund.

Put simply, for every €3 an employee contributes, the employer adds €3, and the State contributes €1 — putting €7 into the worker’s retirement savings.

Contributions will apply to gross earnings up to €80,000, and both employees and employers will contribute at set rates defined by the scheme.