Joined public sector, want to do AVCs

O

OrpSpring

Registered User
Messages
13
Hi,
I joined the public sector (HSE) 6 months ago. I was in the private sector for 20+ years and have an employers/contribution pension.
Obviously I am in the Single pension scheme but I enquired about doing AVCs and I was told I would need to organise this myself through IPF.
I talked to a financial advisor and I will be able to create a new pension with them and submit AVCs via my payroll. The pension provider will take
a significant % of my AVCs for the first year to cover management costs.
My Questions are
- Have others gone through this process and what advice would they give? What questions should I be asking?
- Does IPF provide the best value for money for public sector employees?
Any advice appreciated.
OrpSpring
 
Last edited:
Any public servant can buy an AVC-PRSA with zero contribution fees and 1% AMC from a discount broker.
 
No catch.

Companies sell their products through different channels.

I can buy the same room in a hotel through many different ways: direct / phone/ e-mail / website / booking.com, etc.

In the same way, insurers like IL and Zurich sell their products through various channels.

Most brokers are the traditional type, give advice, charge more.

Some brokers have decided on a different model: lower fees, no advice.

You make your choice.
 
One difference.

Some brokers (e.g. Cornmarket) have the right to do salary deductions directly from PS payrolls.

Discount brokers don't, so you pay the conts out of your current a/c, this means you must claim the tax relief yourself.
 
Protocol said:
One difference.

Some brokers (e.g. Cornmarket) have the right to do salary deductions directly from PS payrolls.

Discount brokers don't, so you pay the conts out of your current a/c, this means you must claim the tax relief yourself.
Click to expand...
Apologies for the basic questions but can you step me thru how it works?
Let's say I set up a AVC-PRSA with a discount broker like Cornmarket.
I suppose I am trying to figure out the service provided by each party.

I am guessing that Cornmarket help me set up the PRSA with a fund provider (Zurich or IL as you mentioned).
I then instruct my PS payroll to pay AVCs to Zurich (or Cornmarket?). I presume I have online access to my Zurich pension and can see contributions and growth etc and possible change the fund profile/risk as necessary?
What do Cornmarket provide for the 1% a year and how does Zurich charge?
What services will I be going without by not choosing the broker who were going to take a fair % of my AVC contributions?
 
If you use Cornmarket, they will do a lot of the work.
They will call or meet you.

NOTE: Irish Life own Cornmarket, maybe this means that Cornmarket will push you towards ILIM funds, I'm not sure about that.

Cornmarket will set-up the payroll deduction. This is why many PS staff use them, for the convenience.

Yes, you may have online access to the insurer's platform, to see your funds, etc.

It's hard to see the fund choice on their website:

Additional Voluntary Contributions | What is an AVC | Cornmarket

An Additional Voluntary Contribution (AVC) is a way to make additional contributions towards your retirement benefits. AVCs are an investment for your future.
www.cornmarket.ie www.cornmarket.ie

Here is the Member Guide:


No list of funds or fees in that Guide.
 
"What services will I be going without by not choosing the broker who were going to take a fair % of my AVC contributions?"

If you don't pay the 595 fee, you won't get a sales rep calling to your house or place of work to chat to you / sell the AVCs.

If you use a discount broker, you can't ask them about fund choice / fund allocation.
 
Best to talk to someone who already has an AVC or even better a person who has retired and gone through the process.


l have been in a Cornmarket AVC for over 15 years and been told the management changes reduces after the 10 year mark, and any excess beyond the lump sum limit is taxed but that can be alleviated through various instruments like ARFs or buying back years etc.

Got a feeling that a lot of AVCs are the last minute variety.
 
Protocol said:
No catch.

Companies sell their products through different channels.

I can buy the same room in a hotel through many different ways: direct / phone/ e-mail / website / booking.com, etc.

In the same way, insurers like IL and Zurich sell their products through various channels.

Most brokers are the traditional type, give advice, charge more.

Some brokers have decided on a different model: lower fees, no advice.

You make your choice.
Click to expand...

Hi, I have a quick follow on query about this. I'm considering setting up one of these execution only AVCs at the moment. Do I have the facility to amend the allocation of the investment in future if I go the execution only route? I assume I do but just wanted to check.
 
Yes.
You can make fund switches, like any customer can.

But you can't ask the broker: "what fund do you think I should switch to?".
 
You must log in or register to reply here.
Back
Top