Pension Trustees Closed Pension fund

G

Germaine

Registered User
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34
Hi

Can a company only offer pensions schemes with one pension company?

Thanks.
 
Last edited:
If an Employer establishes an Occupational Pension Scheme, they generally operate one scheme only. So yes they pick one pension provider.
If however the Employer does not establish such a scheme, it is required to allow members to join a PRSA. But again, the Employer can (and should) select a PRSA provider.
 
It would be very unusual for an employer to offer pension schemes with a number of different insurance companies. It would be more difficult to administer and they wouldn't benefit from any of the benefits of scale that comes with having one large scheme with one company. It would probably cost the members more in higher charges to have multiple schemes in place.

Remember, pension schemes are set up under trust and it is the trustees obligation to make sure the scheme is run properly, contributions are paid on time and suitable investment funds are available. Having a number of schemes would just be too time consuming for the trustees.

Steven
www.bluewaterfp.ie
 
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