The introduction of MyFutureFund, Ireland's automatic enrolment pension scheme, has been one of the biggest changes to workplace pensions in recent years. Since launching six months ago, more than 835,000 employees have been enrolled, helping workers across Ireland start saving for their retirement.
Now, another important milestone has arrived. From 1 July 2026, employees who have been enrolled in MyFutureFund for six months can choose to opt out of the scheme for the first time.
For Early Years providers, understanding what this means can help ensure payroll processes remain compliant and staff receive accurate information.
Who can opt out?
Employees can only opt out during a specific timeframe.
The opt-out window opens during months seven and eight after an employee's enrolment. For those who joined MyFutureFund when it launched, this means they can opt out between 1 July and 31 August 2026.
Employees who decide to opt out must do so themselves through the MyFutureFund participant portal or by contacting the National Automatic Enrolment Retirement Savings Authority (NAERSA). Employers cannot process opt-outs on an employee's behalf.
What happens if an employee opts out?
If an employee chooses to leave MyFutureFund:
- Their own pension contributions will be refunded.
- Employer contributions and the State contributions already paid into the pension will remain invested in the employee's retirement savings.
- The employee will automatically be re-enrolled after two years if they still meet the eligibility criteria.
What does this mean for Early Years employers?
If you manage an Early Years setting, there are a few practical steps to keep in mind.
Keep payroll records up to date
When an employee opts out, their Auto-Enrolment Payroll Notification (AEPN) will be updated by NAERSA. It's important to ensure your payroll system is using the latest notifications so that pension deductions stop at the correct time.
Remember that opting out isn't the only choice
Some employees may not realise they have another option.
After six months in MyFutureFund, employees can choose to pause their contributions for up to 24 months instead of leaving the scheme completely. During this period, employee, employer and State contributions stop, but any money already saved remains invested for their future.
Be ready for questions
With increased media coverage around MyFutureFund, employees may have more questions about pensions. This can also be a good opportunity to remind staff if your service already offers a workplace pension scheme that meets the exemption requirements.
Stay informed
As MyFutureFund continues to develop, it's important for employers to keep up to date with guidance and updates from NAERSA to ensure ongoing compliance.
For most Early Years services, the opening of the first opt-out window is simply another step in the rollout of MyFutureFund. The key is to ensure payroll processes are up to date, understand the options available to employees, and be prepared to answer general questions while directing staff to official MyFutureFund resources for personal advice.
Staying informed now will help make managing automatic enrolment much smoother in the months and years ahead. If you have any questions regarding Auto Enrolment-My Future Fund contact reception@canavanyrne.ie
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