Is it possible to transfer AVC fund to standalone PRSA AVC?

[Protocol]

If I have been contributing to my employer's AVC scheme for several years, and have built up a fund, is it possible to transfer that fund value to a different standalone PRSA AVC?

I'm talking about an existing secondary school ASTI sponsored AVC with Cornmarket Brokers and Irish Life, where the contribution charges are 12.7%.

I would prefer to switch to contributing to a low-cost PRSA AVC with www.labrokers.ie or www.myadviser.ie or some other discount broker.

But can I transfer the original fund value to the new PRSA AVC?

 

[Hawkmoth]

It would not be possible to move your AVC fund elsewhere without at least changing employment and even then it could depend on what you do with all of your pension entitlements (the general rule being that the benefits from an employment stay together).

The contribution charge of 12.7% seems extraordinarily high: are you sure it is that much?

 

[oysterman]

It would not be possible to move your AVC fund elsewhere without at least changing employment and even then it could depend on what you do with all of your pension entitlements (the general rule being that the benefits from an employment stay together).

I'm not sure that's the case here since the AVC has nothing to do with the employer - it is a private contract between protocol and Irish Life, brokered by Cornmarket. But I don't know if it is possible to move it in any case - I've asked this question in the past and never received an answer....does anybody out there know the situation for public service AVCs and the question of portability into a standalone PRSA AVC?

The contribution charge of 12.7% seems extraordinarily high: are you sure it is that much?

It does seem a little bit on the rich side but I'd believe anything about these Cornmarket policies....go on, protocol, talk us through the numbers.

 

[Protocol]

I have read other posts on AAM saying a public service worker can set up a standalone PRSA AVC separate to their employer's AVC.

Check www.myadviser.ie who sell an Eagle Star PRSA AVC that seems to be for people in this situation.

 

[Protocol]

After 1999, if you set up an AVC through Cornmarket, you pay over 800 euro once-off fixed fee to them. The you pay 5% of each contribution to Irish Life as well as an annual Fund Mgt Charge.

But, this AVC was started pre-1999. The recent annual statements are more transparent, and now have info on charges, and the charges on a monthly contribution of 1000 euro approx was 12.7%.

These are not Cornmarket charges, they are Irish Life charges. Probably a mixture of commission and an entry charge.

 

[oysterman]

The recent annual statements are more transparent, and now have info on charges

They are and they aren't.... To the best of my knowledge the charges are neither shown in total nor is there a breakdown on the statement. The money is about as easy to track as that of a certain man from Drumcondra in a house purchase.

 

[oysterman]

I have read other posts on AAM saying a public service worker can set up a standalone PRSA AVC separate to their employer's AVC.

Check www.myadviser.ie who sell an Eagle Star PRSA AVC that seems to be for people in this situation.

No! No! No!

They'll stiff you for a 2% "entry charge" (as they describe it) per contribution.

For an execution-only broker: c.€150-250 set-up charge, 0% commission (myadviser's "entry charge"), 1% annual management charge and no bid/offer spread is what the best deals out there appear to be offering.

 

[Protocol]

The Eagle Star PRSA AVC through www.myadviser.ie has contribution rates from 0.5% to 2%, yes, that's true.

But the Eagle Star brochure is the only one I've found that specifically deals with public service workers AVCs. See here: [broken link removed]

www.labrokers.ie have a Irish Life PRSA deal for 150 set-up charge, and no commission.

What I am asking is: can you transfer your existing AVC fund to the new policy?

 

[oysterman]

The Eagle Star PRSA AVC through www.myadviser.ie has contribution rates from 0.5% to 2%, yes, that's true.

But the Eagle Star brochure is the only one I've found that specifically deals with public service workers AVCs. See here: [broken link removed]

That's an excellent brochure that you've linked to. It is the first time I've seen laid out the %s of existing salary a public servant would need to pay into an AVC to pay for the enhanced commutation and spouse's pension benefits. The scope that these give for buying additional pension cover is huge and all public servants who are otherwise well sorted out financially (i.e house bought etc.) should really look into this idea.

However, given that you have this information now you should be looking for the policy that will fleece you least on commission and charges. As far as I can see there is no sense in which public servants can avail of this policy/provider but they can't go to another provider of a standalone PRSA AVC.

You yourself mention the labrokers Irish Life PRSA AVC - it seems to give access to the same funds as the standard Cornmarket/Irish Life public servant offering but - on an execution only basis - at radically lower cost than our old Cornmarket pals i.e. €150 set-up charge; 100% allocation; 1% annual management fee which falls once the fund reaches certain levels; no bid-offer spread.

CapitallCCC's firm can broker you Eagle Star PRSA AVCs on very similar terms to the labrokers ones (albeit at a slightly higher set-up charge of, I think, €250).

What I am asking is: can you transfer your existing AVC fund to the new policy?

I still can't tell you that but increasingly suspect you can't.