difference between PRB & PRSA

M

mar

Registered User
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10
Hi

I have a small pension fund from a previous employment

I now wish to start a pension & my employer will double my contribution up to max 10%. Is there a difference between PRB & PRSA

Many thanks

Mar
 
Mar,
Generally a PRB is used to accept a Transfer Value from a previous pension scheme. Normally no further contributions are made.
A PRSA is a type on personal pension into which regular contributions can be made, by you and an a Employer. BUT any Employer contribution is treated as a BIK for tax purposes even if you subsequently get personal tax relief on the total contribution.
If your Employer is willing to match your contribution I suggest an Executive/ Directors Pension as it is better from a tax perspective (the employer contribution is not treated as a BIK).
 
Thanks Conan - can the transfer value from previous pension scheme be paid into prsa?

Mar
 
Mar

Why don't you transfer your retained benefits into the new scheme?

You have to be a member of a pension scheme for 2 years to be entitled to the employers contributions (this may be waived). If you transfer benefits from a previous scheme into the new ones, the years pensionable service transfer too so you will be entitled to your employers contributions from day 1.

Go with Conan's advice and set up an executive pension scheme...or they may already have a group scheme. A PRSA can accept transfers but an exec scheme can have a better charging structure and fund choice than a PRSA. Then there is the USC payable on the employer contributions in a PRSA which you don't have on an exec scheme.

Steven
www.bluewaterfp.ie
 
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