Have to stick with Employer PRSA?

S

staunton

Registered User
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Hi just some quick questions I hope,
My girlfriend has signed up to her first pension with her new employer.
The employer is contributing 5% towards this.
However it is a v high cost prsa 5% per contribution and I think 1.5% management charge.

Given that her employer is contributing 5% anyway and would sort out any tax benefits for her would it be worth her while to move to a cheaper option.

Is there any way of moving to a cheaper option while keeping her employer contributions

Also if she were to change job in the future how long would she have to be a member of the plan to take her employers contributions with her to next employers plan.
Any help is much appreciated as I am ignorant in the ways of such things!!!
Thanks
 
She could do an 'Execution Only' product provided she knows what she is looking for and does not need any advice. She would then have to claim the reliefs 'manually'. She would have the employer PRSA and her own separate PRSA.

She could ask her employer to add another (cheaper) provider to the one that is available and argue that the employees may contribute more if less of their contribution was going in charges. This may be attractive to the employer as they will be saving PRSI on the employees contributions.

The employer contributions on the PRSA are 'transferrable' automatically ie there is no waiting period.

Hope this helps.
 
F. Kruger said:
She could ask her employer to add another (cheaper) provider to the one that is available and argue that the employees may contribute more if less of their contribution was going in charges.
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I know from my own situation that my employer's PRSA provider is the company's business bank through which wages, etc are paid. Don't know how on a practical basis it would work with a PRSA provider other than the company's business bank. Don't know if deductions could still be done through payroll.
 
Happy Girl said:
Don't know how on a practical basis it would work with a PRSA provider other than the company's business bank. Don't know if deductions could still be done through payroll.
Click to expand...

That is what the bank and, in some cases, the employer would have you think.

It is not a difficult thing to do.
 
An employer can appoint as many PRSA providers as they like, if they want to offer their employees a choice.

Each provider would be debiting the employers account each month with the amount that is due to each of them. This will have been collected via payroll from employees and employer pays their part(if any). This amount is confirmed to the payroll 'department' by each provider.

The only problems that you could encounter is that the employer or the payroll 'department' may deem it to be top heavy, administratively.
 
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