Letterkenny being headquarters of new pension scheme is 'a major win for Donegal'

The confirmation that Letterkenny will be the headquarters of the new National Automatic Enrolment Retirement Savings Authority has been described as “a major win for Donegal.”

Pat the Cope Gallagher TD, member of the Oireachtas Committee on Social Protection, has welcomed the confirmation by Minister for Social Protection Dara Calleary TD.

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 automatic enrolment pension scheme, workers in Ireland will be automatically enrolled if they are aged between 23 and 60, earn more than €20,000 per year, and are not already part of an occupational pension scheme. This means that thousands of employees will begin saving for retirement automatically, without needing to take any action.

The system will be co-funded by employees, employers, and the State. Employee contributions will start at 1.5% of gross pay and will gradually increase to 6% over a ten-year period. Employers will match these contributions at each stage, while the State will provide an additional top-up, starting at 0.5% and rising to 2% by year 10.

By year 10, this will result in a total of 14% 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.

In line with the Government’s commitment to balanced regional development, NAERSA will be headquartered in Letterkenny, 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. Board meetings will take place periodically in Dublin and Donegal.
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.”

The Department of Social Protection has confirmed that Tata Consultancy Services (TCS) has been selected as the preferred bidder to manage the scheme’s administration. TCS will deliver services such as account management, contributions processing, and participant communication.

TCS already operates a major Global Delivery Centre in Letterkenny, employing nearly 1,400 people, and is currently recruiting new staff to support NAERSA’s employer and employee contact centres.

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TCS has a strong track record in pensions delivery, having operated the UK’s National Employment Savings Trust (NEST) since 2011 — a scheme now serving over 13 million participants.

Deputy Gallagher added: “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.”