FourPawedDog
Registered User
- Messages
- 20
In general with these kinds of decisions, the decision about future contributions is separate to the decision about past contributions. There may be transfer costs involved in transferring your funds from the old crowd to the new crowd that need to be considered. Don't assume that you have to have to transfer the existing funds, or that you have to do it now. Why not fix up future contributions, and then take your time deciding what to do with the existing ones?Thanks for the input Rainy Day. My understanding is that existing and future contributions are simply moved to fund allocations of my choice which are then managed by my chosen agent.
Fair enough, but it's unusual to have such a clear, absolute difference between any of the providers in this market. I just thought you might like to specify what you're expecting in the way of customer service or fund performance, and see if others have similar experiences. And as all the ads tell you, past performance is no guarantee etc etc etc. But it's up to yourself of course.In relation to the service, value and performance - it is pretty straightforward really... I'm confident the level of service I would receive from any agent other than the one currently engaged by my union would be superior. On top of this, past performance would suggest that I can avail of better value funds that are more effectively managed by using another agent.
Would you like to give some examples or more detail on this?More alarming though is how poor the deals negotiated by the public sector unions with pension companies are in respect of fees and commission.
You should consider leaving your current fund with your existing AVC supplier
Cornmarket/Irish Life taking 5% commission on each contribution in addition to set-up charge and 1% annual management fee - this is way out at the expensive end of the charging spectrum despite the clear scale economies in dealing with thousands of public sector employees whose needs are very similar.Would you like to give some examples or more detail on this?
In fairness to Cornmarket, it looks like they have a range of options, with no commission or setup charge and just 1% annual management fee for execution only business;
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In fairness to Cornmarket, it looks like they have a range of options, with no commission or setup charge and just 1% annual management fee for execution only business;
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Agreed. But the whole point about public service AVCs negotiated by the unions with the providers is that they are NOT execution-only; the lack of complexity, the ease of selling and the massive economies of scale should enable the unions to get really good deals on behalf of their members.
In a company, all the employees will be fed into one scheme, the company's HR department will send the money (employee contribs + company contribs + avcs) to the pension company on a monthly basis. Once it's setup the pension company just needs to watch the money roll in.
In comparison public sector AVCs will seem almost chaotic. Some employees are paid weekly, some monthly, you've some paid directly by government, some paid indirectly, only some workers interested and even when interested it's often only quite close to retirement age (i.e. a short period in which the pension companies can extract their pound of flesh).
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