Can civil servant change from high charges AVC provider?

H

HAL9000

Registered User
Messages
11
Hi all

I have been paying into an AVC scheme with New Ireland since 1998. The contributions have amounted to €21840 approx. My latest Annual Benifit Statement puts a value of €20733 on my accumaleted fund, or over €1100 less than has been paid in. As I pay tax at the higher rate, I know that the real cost to me of accumalating this fund is far less than the contributions when tax relief is taken into account, but I feel that the insurance company is taking advantage of this fact. As a civil servant am I free to transfer the accumalated fund and future contributions to any provider I wish, i.e. one with lower charges and better performance?

HAL9000
 
Almost certainly yes however you will no longer get reliefs at source, you would need to submit a tax return and reclaim PRSI.
 
Perhaps you're free to move it to another New Ireland fund within the scope of your civil service arrangements. You'll probably be screwed again on transferring it.

That performance is truly dire though. And I thought my Standard Life pension also opened in 1998 did badly...
 
i was in the same position as you. I've made use of AVC Prsaa, i.e. went to Eagle Star, much lower charges.
 
Tax relief at source is important to me as I just could not afford the full hit on a weekly basis of making contributions without that relief.
Wonder,when you changed to Eagle Star were you able to arrange for relief at source.
Yes I agree with you GeneralZod that the performance is truly dire. Even allowing for high charges I am shocked that my fund is actually worth less than the total contributions made and this does not even take inflation into account.
 
Hi HAL9000,

Do you mind me asking what particular New Ireland AVC scheme that you were paying into?
 
HAL9000 said:
Tax relief at source is important to me as I just could not afford the full hit on a weekly basis of making contributions without that relief.
Wonder,when you changed to Eagle Star were you able to arrange for relief at source.


Once you get the avc contract from Eagle Star you submit it to Revenue and they will adjust your tax credits straight away. It is only the prsi relief you need to wait for at year end.
Click to expand...
 
Your statements will only have included charges by the provider. The Govt depts charge 1% on top of this for "admin purposes". If you go with your own PRSA AVC you will avoid this charge. PRSA AVC charges and fees can be much less than those applying to the default civil service schemes, and you have a wider range of funds available.
If you have a problem with waiting for the PRSI refund, then reduce your payment slightly then increase it next year.
You are clearly unhappy with the present arrangement, but staying put wont improve the situation. A comparison of the return you would have got from any of the PRSA schemes versus your present scheme, since you started, will convince you.
 
You must log in or register to reply here.
Back
Top