Cornmarket AVC

Discussion in 'Pensions' started by johnmck, Oct 3, 2018.

  1. johnmck

    johnmck Frequent Poster

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    Hello,

    I'm a 38 year old teacher and Cornmarket have been onto me about taking out their AVC. I took the payment protection with them but not the AVC. I wanted to check around first before committing.
     
  2. Protocol

    Protocol Frequent Poster

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    2,744
    Cornmarket charges are high, although they do provide advice, etc., and will call to your school or house.

    Of course you pay for that in the fees.

    I advise PS to get a PRSA-AVC from a discount broker, same funds, lower fees.
     
  3. mula

    mula Frequent Poster

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    Avoid Cornmarket or any other Union based advisors like the plague for anything other the income protection unless you want poor performance high start up fees with high ongoing costs and products pushed on you you dont need.
    Make sure you even need an AVC you might not.
    Get a quote for buying Notional service first a decent advisor can do this or you can do it your self online.
    Get indpendent advice pay a fee and as stated if you need and AVC use a PRSA-AVC make sure it a standard one and not a non standard one.
    No allocation rates and no more then a 1% annual management fee but ideally less.
    Tax relief can be claimed on montly contributions through revenue so you dont need salary deduction.

    Mula
     
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  4. Ravima

    Ravima Frequent Poster

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    If you don't have full service from age 20, you should seriously consider purchasing notional service. After that, if you want to retire early, do the AVC.
     
  5. mula

    mula Frequent Poster

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    not in all cases
     
  6. dublin67

    dublin67 Frequent Poster

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    Does anyone know whether it is possible to move AVCs from one service provider to another.

    Fact pattern: Nurse (full and pensionable etc) and making standard HSE nurse pension contributions. Individual had paid c. t c. €30K in Cornmarket AVCs through INMO scheme between 2000 and 2008. Ceased contributing to AVC c. 2008 and bought back years. Would like to move AVCs from Cornmarket to another AVC provider where charges aren't so high.

    I was particularly surprised when reviewing her paperwork that she was actually charged about IR£600 for the Cornmarket consultation (i.e. sales call) when she signed up to the AVC.
     
  7. mula

    mula Frequent Poster

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    Yes it is possible to move your AVC. If it is under 10k it can be moved to any PRSA AVC provider with no charges expect ongoing management fees levied by the new PRSA provider.

    Above 10k and a Actuarial comparsion report is need and is carried out by an actuary. This is then given to the trustees of the scheme and your avc can be moved.

    Cost of a Actuarial comparsion are prohibative unless the fund is very large but there are some specialist companies that provide a no/low cost of transferring a AVC.

    Mula
     
  8. Protocol

    Protocol Frequent Poster

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    The Cornmarket initial fees may be high, yes.

    But if the ongoing AMC is the same as other providers, then is there any use in moving?
     
  9. mula

    mula Frequent Poster

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    122
    Yes

    Flexibilty to choose a number of different companies with funds that may be alot better then those offered through Irishlife/cornmarket.
    Amc is are only one factor performance should be a big factor when comparing fund managers.
    With group avc schemes the client has no control of changes to the charges however with a Standard PRSA-AVC the charges are fixed to a max of 5% contribution charge and 1% AMC. However much lower charges can be found if you shop around.
    At retirement the same applies if a ARF or AMRF is required.
     
  10. Gordon Gekko

    Gordon Gekko Frequent Poster

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    I don’t think that’s right
     
  11. mula

    mula Frequent Poster

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    Which part?
     
  12. Gordon Gekko

    Gordon Gekko Frequent Poster

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    That a Certificate of Benefit Comparison is required to move one’s AVC PRSA from (say) Cornmarket through Irish Life to (say) Zurich Life, irrespective of its value.
     
  13. SBarrett

    SBarrett Frequent Poster

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    All of it except for the first part. The certificate of comparison is required if transferring out of an occupational pension scheme to a PRSA. You can transfer PRSA providers without a Cert of Comparison. When you transfer, you can't be penalised for transferring, so no early exit penalties and nothing less than the full value of your pension is invested in the new policy.

    I wouldn't say the costs are prohibitive either, usually €1,000 plus VAT which is reasonably priced for what you are getting and the high level of qualification that the person doing the work has.

    Back to the original question, seeing as the PRSA AVC is "paid up", you have paid most of the costs already. The only fee you will be paying now is the 1% annual management fee, which will be the standard fee for a PRSA anyway.


    Steven
    www.bluewaterfp.ie
     
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  14. mula

    mula Frequent Poster

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    Read my post again. I said the AVC can be moved to a PRSA AVC.

    The poster has a Group AVC not a PRSA AVC through the Nurse group scheme adminsitered by CGFS.

    I said the AVC as in group AVC can be moved if under 10k with no Cert and above 10k with cert to PRSA AVC.

    Once its a PRSA AVC it is no longer part of the group scheme .

    PRSA AVC to PRSA AVC can then be made with no costs to transfer.

    This was one of the reasons PRSA's were introduced in the first place.

    Group Scheme AVC's are not PRSA AVC's.

    Mula
     
  15. mula

    mula Frequent Poster

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    I am aware that there are certs can be arranged for little or no cost in most cases.
    Group scheme funds are not all 1%.
    Again the Nurse has over 30k or so in the group AVC scheme so a cert is required to move it to a PRSA AVC.
    At retirement Cornmarket will in most cases move the client into the ARF after max tax-free cash is taken as its "easiet" to do this and then there will be much higher charges with trail commissions attached bringing AMC's as high as 1.75%

    Mula
     
  16. LDFerguson

    LDFerguson Frequent Poster

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    Really? A Certificate of Benefits Comparison must be completed by an actuary with suitable qualifications and professional indemnity insurance. I'll admit that I don't run into the requirement for such a certificate all that often as there are usually alternative options available that will achieve the same aim without requiring a certificate. But I'd be genuinely interested to know of where one can arrange a Certificate of Benefits Comparison for little or no cost.
     
  17. SBarrett

    SBarrett Frequent Poster

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    Sorry, missed that bit.