I am interested in contributing to an AVC scheme and wondered if I am obliged to use the Public Sector AVC scheme my employer has set up or can I choose my own provider? If it is possible, are there any pros or cons to choosing one over the other? I would be comparing management fees etc. if shopping around.
Instead of joining the “employer associated”AVC, you could establish a PRSA AVC with a provider of your choice. The possible disadvantages of this are:
- you won’t get tax relief under the net pay system
- you have to apply directly to Revenue for your tax relief (perhaps by making a tax return at the end of each year).
Its possible that you might be able to negotiate a better deal with a PRSA AVC.
Thank you Conan, that is very helpful. I did not know that tax relief could only be given at source if contributing to the employer AVC. Having to apply for tax relief separately is off-putting for sure.
Thank you Conan, that is very helpful. I did not know that tax relief could only be given at source if contributing to the employer AVC. Having to apply for tax relief separately is off-putting for sure.
Hi there, I currently work in the HSE and have been trying to understand my pension. From what I understand I am part of the single public service pension scheme which entitles me to a defined pension upon retirement which is based on an average of previous years of service. This sounds like...