Portable PRSA - Do employers have to facilitate

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MandaC

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Hi

I know PRSA's are portable, ie that they can move between different jobs. Our company previously had a defined benefits scheme, which unfortunately I cannot be part of as I was not there at the close off date. It seems to be an excellent scheme, but such is life.

They are looking at giving us a PRSA option for the rest of us who are not covered. The PRSA they are giving is the same as the one I have. I have asked the question can I amend my PRSA so it is taken directly from my salary, so I dont have to chase PRSI at the end of the year. Employer will also benefit I think (10.75% on my contributions) and I will be able to get any future employer contributions.

The provider is looking into this because they are not happy that I took out my prsa through an execution only broker, hence I do not have the high charges the others will have. Question is, do they have to facilitate me?
 
I don't think they do have to facilitate you. The employer must allow access to a PRSA for those that are not covered by other pension schemes, but they don't have to contribute to a specific PRSA nominated by you. If employer's contributions aren't dependent on your own level of contribution, you could just have them lodge their own contributions into the employer PRSA and continue contributing to your own one as normal.
 
If your PRSA and theirs are with the same PRSA provider, you may be able to arrange to have yours included on their Direct Debit, which should please them from an admin point of view.

I can recall a situtaion in the past where a client of mine had an Eagle Star PRSA and he joined a new employer where there was an Eagle Star PRSA arrangement in place for employees. We were able to get the existing PRSA included on the employer's Direct Debit.
 
LDFerguson said:
If your PRSA and theirs are with the same PRSA provider, you may be able to arrange to have yours included on their Direct Debit, which should please them from an admin point of view.

I can recall a situtaion in the past where a client of mine had an Eagle Star PRSA and he joined a new employer where there was an Eagle Star PRSA arrangement in place for employees. We were able to get the existing PRSA included on the employer's Direct Debit.
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Hi Liam, That is the exact same scenario for me. Have joined a new employer and they are offering us an Irish Life Standard PRSA which is exactly what I have. I want to have mine included on the Employers D/D.

Also, employer is looking at paying 5% for us, so it would not be worth starting another one the exact same, just to get the 5% when 5% is taken in charges, which I am not paying at the minute.

They are to come back to me next week, so will see what they say. At least I know it can be done.

Thanks.
 
MandaC said:
Also, employer is looking at paying 5% for us, so it would not be worth starting another one the exact same, just to get the 5% when 5% is taken in charges, which I am not paying at the minute.
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Yes it would, if you mean that the employer is paying 5% of salary.

The 5% charge is 5% of the contributions. This is likely to be an awful lot less than 5% of salary.

Example - let's say your salary is €30,000 and you're currently paying 5% of salary (€125 per month) into a PRSA with 100% allocation. So €125 per month is going into your PRSA each month.

Your employer insists that you join theirs to get their 5% contribution. So you stop yours and then divert your own 5% into a new one, with your employer's 5%. So a total of 10% of salary is going in, i.e. €250 per month. But this is subject to a 5% charge. So €237.50 is what's hitting your PRSA after charges. Which is a lot better than €125.

(But of course €250 would be better again, if it can be agreed.)
 
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