Which PRSA given that I need to transfer my DB Pension -they're winding up the scheme

K

Katie

Guest
Hi,
I was laid-off last year and have now been informed that I need to transfer my DB Pension lump-sum (they're winding up the scheme) into buy-out bond or PRSA or another company. The 'other company' option is out - I'm studying and doing part-time work so don't think I'll be in a permanent-pensionable job for quite a while unfortunately.

Meantime I've a deadline of May 27 (Friday) to make a decision on this! I think PRSA is the way to go. I've about 43K of a transfer value plus 51k in AVCs.

I attempted to follow the Which PRSA Is Best thread but that discussion seemed to go back to 2003. Any advice now on the best current option for PRSA given that I'm NOT in permanent employment and don't currently have much dosh to top-up this PRSA if and when I start it.

Could I just start it with the lumpsum and top it up with a nominal fee until I find my perfect job or a rich man to keep me?

Thanks for any advice, KT
 
Re: Which PRSA given...?

Katie said:
Hi,
I was laid-off last year and have now been informed that I need to transfer my DB Pension lump-sum (they're winding up the scheme) into buy-out bond or PRSA or another company.

...

Meantime I've a deadline of May 27 (Friday) to make a decision on this! I think PRSA is the way to go. I've about 43K of a transfer value plus 51k in AVCs.
Click to expand...

You should carefully assess the charges on each option. It may well be the case that a BOB would work out cheaper than a PRSA in some cases. You should shop around and, if necessary, engage the services of a good independent advisor.

I attempted to follow the Which PRSA Is Best thread but that discussion seemed to go back to 2003. Any advice now on the best current option for PRSA given that I'm NOT in permanent employment and don't currently have much dosh to top-up this PRSA if and when I start it.
Click to expand...

Be careful about assuming that there is a one size fits all "best" PRSA or any other financial product. Much of the general information in the thread you mention is still general enough to be pertinent and is worth reading.
 
I am in a similar situation. It seems to me as if a Buy Out Bond is best because you can potentially transfer it into a future occupational scheme and secondly because when you restart work, if your employer has an occupational scheme you will probably want to use that one because the employer will most likely pay the commission and fund management charges. This is better than getting the employer to pay their share (if any) into your PRSA and have you carry the charges. The only problem is that the Buy Out Bond may not be accepted into your future employers scheme because the actuaries are likely to deem the amount too large and consequently too risky (there is regulations concerning risk and hedging). If they don't accept it in you can always let it run in parrallel to any other scheme you have and make no further payments into it, BUT the big downside then is that a Buy Out Bond is not "ARFable" i.e. you cannot put it into an Approved Retirement Fund and bequeath it.

Have a look at my post from this morning because there may be some useful information there and hopefully in the replies.
 
Is it possible to transfer from a BOB to a new employer's scheme? I thought not but could well be mistaken.
 
I have been told that you can transfer a Buy Out Bond (aka Personal Retirment Bond) into a scheme but if the amount is greater than €10k the fund managers need to have a hedge fund of at least €1m specifically for the amount being transferred inwards - I don't know if that would mean that they would need €9.4m in the case of transferring in €41k and €53k as could be the case here.
 
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