Cornmarket AVCs - nurses scheme

[brownc1966]

Hi,

I was looking at my avc statement and was surprised to see that I was being charged 5% ""administration fee" by Cornmarket which seems really expensive.

Are there other AVC provider that I can use in the HSE nurses scheme or I am able to do a PSRA.

I am 41 and have been working as a nurse since 1991 with the ususal breaks overseas. I have a permanent positions and am paying normal superannuation.

Sorry if this is a repeated question but I find most of this stuff baffling.

many thanks

 

[LDFerguson]

You can start an AVC PRSA with any provider of your choosing. You'll pay the contribution gross from your bank account by Direct Debit and then claim the tax and PRSI relief yourself.

You can get discounted charges from some of the discopunt brokers listed in .

 

[ecdarg]

Hi,

Not all providers of avc/prsa have an indept understanding of supperanuation and how the benifits are calculated. most avc/prsa are better done through deduction at source as tax and prsi relief is granted at source. 5% contribution charges are common on most pensions. although you could shop around and find a lower contribution charge the avc will not come from your salary and you will have to wait till end of tax year to claim.

ecdarg

 

[LDFerguson]

most avc/prsa are better done through deduction at source as tax and prsi relief is granted at source.

Not if it means you end up paying hundreds of euros in set-up fees and higher ongoing commissions for the lifetime of your AVC PRSA for the privilege. You get the exact same tax and PRSI relief with a stand-alone AVC PRSA as with one arranged through salary deduction - the former merely requires you to claim your own tax and PRSI relief.

5% contribution charges are common on most pensions.

Just because they're common, that doesn't make them competitive. Anyway, don't Cornmarket also charge a set-up fee? And additional charges to the provider ON TOP of the 5%?

although you could shop around and find a lower contribution charge the avc will not come from your salary and you will have to wait till end of tax year to claim.

No you won't. You can claim your tax relief immediately. You only have to wait until the end of the tax year to re-claim your Employee PRSI relief. But that's small money anyway - the tax relief is the big one and you can claim that straight away. In most cases you'll get an increase to your tax credits so you'll be effectively getting immediate tax relief.

 

[Marathon Man]

On top of the Cornmarket wharges, the Dept. charges a "collection fee" of 1%, to compensate itself for all the difficulties, work, hassle etc in collecting the AVC contributions. If you opt for your own standalone PRSA AVC, you will also save yourself this additional 1%. As this is not a Cornmarket charge, it will NOT appear on any statement of fees & charges!! You'll need to factor it in.

On top of this, if you opt for the default fund, you will, if I recall correctly, be charged a 1.75% annual management fee. If, walking in off the street, you took out the same policy with Irish Life, you'd only be charged 1%.

 

[ecdarg]

No you won't. You can claim your tax relief immediately. You only have to wait until the end of the tax year to re-claim your Employee PRSI relief. But that's small money anyway - the tax relief is the big one and you can claim that straight away. In most cases you'll get an increase to your tax credits so you'll be ffectively getting immediate tax relief.

Sounds like a lot of work to me, a1=6% d1=2.9%
If i for eg. goes job sharing/partime/flexi time will any provider recalculate the new amount into my standalone avc automatcally or do i try to calculate my new contribution myself and inform the provider.

 

[LDFerguson]

Sounds like a lot of work to me, a1=6% d1=2.9%
If i for eg. goes job sharing/partime/flexi time will any provider recalculate the new amount into my standalone avc automatcally or do i try to calculate my new contribution myself and inform the provider.

If I'm putting 10% of my salary into an AVC and then I reduce my salary by half, it's not exactly rocket science to figure out what my new AVC amount will be.