Employees who fail to join a pension scheme as soon as they start work would automatically have 5 per cent of their earnings deducted under a scheme considered by the Pensions Board.
"Automatic enrolment" would see the money put into a PRSA-type arrangement. Employees would have the right to opt out of the scheme - described in the National Pensions Review as "a soft approach to a form of mandatory pension" but would have to take the initiative to do so.
Proponents say the approach addresses the situation of people who are aware of the importance of pension saving "but just never quite get around to it".
They argue that, once signed up from the start of employment, people would not notice the deduction from their wages and are less likely to opt out.
However, the scheme would depend on employer co-operation and the National Pensions Review notes "the large number of employers who have been slow to comply with the less demanding PRSA access obligations".
The move mirrors a recommendation expected to feature in a report on the British pensions system due at the end of the month.
The Financial Times yesterday reported that the Pensions Commission would propose automatic enrolment for workers in a national savings plan when they first start employment.
The National Pensions Review, which was brought forward by a year to propose ways to kick-start a faltering national pensions policy and is being debated by Cabinet, has not yet been published. It does not recommend automatic enrolment at this stage although it did list it under areas that were identified "for further consideration and debate".
The broader concept of mandatory pension provision was also included in this list.
The board also considered the establishment of savings accounts for children - a portion of which could be accessed by the child in adulthood with the majority going to pension savings.
However, such proposals could prove expensive to the State, depending on the exchequer contribution.
There was also some support for making more flexible Approved Retirement Funds, which avoid the need to purchase an annuity at retirement, available to all pension contributors.
