# Employer's PRSA scheme



## hannonpaul (2 Dec 2008)

Hi
I'm hoping to start a PRSA. My employer has an arrangement in place with a particular pension company (there is no occupational pension scheme). If I wish to have my contributions deducted automatically from gross salary (and hence maximise PAYE and PRSI reliefs) am I obliged to join this scheme or can I arrange my own PRSA independently and still benefit from the tax relief by having my contributions deducted from gross salary?

Thanks in advance for any replies.


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## GSheehy (2 Dec 2008)

Your employer is only obliged to provide you with a salary deduction facility from one product provider.

If you have a good reason for going with another PRSA Provider, your employer may listen to your case and accommodate you.


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## GoldWings (24 Mar 2009)

Similar question: 
Dear all.
I am looking for some advice, as usual! 
I work year to year contract usually. I had my own PRSA (evergreen BOI). This year, I  got a 2 yr contract which included a 12% contribution to a pension scheme, also a PRSA scheme. 
I wanted to keep things the way they were and keep my own PRSA by diverting the contribution into it, but HR said that I couldn’t – have to go with _their _scheme. … . . or else I lose the 12% contribution! 
So I went ahead and froze my PRSA and opened the new one. 

Now people in the office are coming up against the same thing (the offer of a pension is a new thing in this neck of the woods). 1 person says that he’s going to negotiate a cash-back equivalent with HR and the other is going to try and do exactly what I wanted – divert the contribution into his evergreen pension with BOI. 
HR where I work can be wrong and have been wrong in the past. In my workplace, there are folk in permanent positions that are entitled to a pension. I think the type of contract I was given (that includes a pension) was new to them and HR gave me ‘the standard response’.  

Once I heard that my colleagues were questioning their options, I said I’d throw this one to the folks on AAM. 
What’s legal here? 
If HR were right in saying that I have to go with their scheme or lose the contribution – why is this?
Thanks in advance.


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## LDFerguson (24 Mar 2009)

howmuchunder said:


> What’s legal here?
> If HR were right in saying that I have to go with their scheme or lose the contribution – why is this?


 
Since September 2003, all employers have a legal obligation to offer all employees access to some form of pension scheme once the employee has completed six months' service. 

Your employer has done this and so has met their legal obligation.  They are under no obligation to accomodate your (or anyone else's) PRSA, nor are they under any obligation to make employer contributions. 

I'm presuming that your employer's reasoning is that it would be significant additional workload to facilitate, record and administer contributions and Direct Debits to a different PRSA provider for each employee.  By insisting on one PRSA arrangement, they have one monthly Direct Debit to one provider each month, in respect of all employees.  

Not saying I agree with this approach in all circumstances - just trying to explain it.


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## GoldWings (25 Mar 2009)

thanks for the reply. However, I am two years in this institute it was not them (HR) that offered me the penion. My manager got funding for a 2 yr project. He budgeted for a pension for some of us that will be working in this project.


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## LDFerguson (25 Mar 2009)

Once you're over six months working for the same employer, the employer should offer you access to some form of pension arrangement.  They don't have to make any contributions to it, though.  It doesn't matter if you're permanent or contract.


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