M
Maggie'sFarm
Guest
I am transferring my personal pension fund (defined contribution scheme) from a previous employer to a Standard PRSA. The main benefit to me is that I can obtain a significantly larger tax free lump sum (25%)on retirement in 2011, than that available under my previous employment pension scheme ( where amount of lump sum is dependent on length of service etc) .
In addition a PRSA offers me more options in how I can draw down the fund in retirement.
The current fund is 100% cash and bonds. The PRSA I have chosen is 100% fixed interest- i.e. both are very low risk and consequently low growth – my objective at this stage is to maintain capital.
I have been informed that the PRSA provider will not accept a transfer from another scheme without a Certificate of Comparison being issued to me. I have been advised that the cost of this certificate is €2,000 including vat. The purpose of the certificate of comparison is to prevent the selling of inappropriate products to customers and it must be issued by an actuary with professional indemnity insurance. While I accept the need for the certificate I do not believe that the level of fees in this instance can be justified, given the comparative simplicity of both funds. Has anyone else experience of this apparently lucrative certification. Surely the fee should be based on the work required to provide the certificate rather than a flat fee. Does anyone know an actuary who can provide the service at a more reasonable fee?
In addition a PRSA offers me more options in how I can draw down the fund in retirement.
The current fund is 100% cash and bonds. The PRSA I have chosen is 100% fixed interest- i.e. both are very low risk and consequently low growth – my objective at this stage is to maintain capital.
I have been informed that the PRSA provider will not accept a transfer from another scheme without a Certificate of Comparison being issued to me. I have been advised that the cost of this certificate is €2,000 including vat. The purpose of the certificate of comparison is to prevent the selling of inappropriate products to customers and it must be issued by an actuary with professional indemnity insurance. While I accept the need for the certificate I do not believe that the level of fees in this instance can be justified, given the comparative simplicity of both funds. Has anyone else experience of this apparently lucrative certification. Surely the fee should be based on the work required to provide the certificate rather than a flat fee. Does anyone know an actuary who can provide the service at a more reasonable fee?