# Join employer PRSA?



## zephyro (28 May 2007)

My employer's PRSA provider is BoI. The charges are 1% a.m.c. plus 5% on contributions which are a lot higher than I'd like, plus I don't like the choice of funds. Anyone have any advice on whether I should go with this or look elsewhere? If I want to have my pension contributions deducted from my salary at source is this my only option?


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## ClubMan (28 May 2007)

Will the employer contribute or match employer contributions up to some level? If so then employer contributions may make it worth putting up with the 5%/1% charges. If they do not contribute then you might be better off shopping around for something like the 0%/1% deals on offer elsewhere or a similarly low charges personal pension plan rather than a _PRSA_. Lots of info on such deals in other threads. Obviously other factors are also relevant - e.g. suitable choice of funds, customer service etc. If you go with your own pension then it is likely that you will have to make contributions from net income and claim back tax and _PRSI _relief manually. It is unlikely that the employer will facilitate contributions via payroll other than to their own scheme.


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## zephyro (28 May 2007)

ClubMan said:


> Will the employer contribute or match employer contributions up to some level?


 
No employer contribution unfortunately, I'll look into personal pension plans.


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## ClubMan (28 May 2007)

If there are no additional benefits (e.g. life assurance etc.) attached to the employer _PRSA _scheme then you might well be better off shopping around for a better deal on charges. As I said you will need to claim tax and PRSI relief manually.


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## long_boy (28 May 2007)

I'm in a similar situation (ie BOI PRSA) but with a 10% contribution. I'm just waiting to get a contact name to do some digging. I wonder would it be possible to use some of the execution only guys to get a better deal? It sounds like payroll may not support this directly but do you think I could do it myself and get the 10% benefit?


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## ClubMan (28 May 2007)

long_boy said:


> I'm in a similar situation (ie BOI PRSA) but with a 10% contribution.


Sounds very generous! Do employees have to match this? What if they do and 20% is above their normal age related pension tax relief level - e.g. do they not get tax/_PRSI _relief on the excess?


> I wonder would it be possible to use some of the execution only guys to get a better deal? It sounds like payroll may not support this directly but do you think I could do it myself and get the 10% benefit?


Some employers might facilitate this (payroll deductions and employer contribution remitted to somebody who is not their nominated provider) but I would imagine that it's more likely with smaller employers and many employers will want to keep things simple for themselves.


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## long_boy (28 May 2007)

ClubMan said:


> Sounds very generous! Do employees have to match this? What if they do and 20% is above their normal age related pension tax relief level - e.g. do they not get tax/_PRSI _relief on the excess?


Let me clarify - it's 10% of my contributions, I wish it was 10% of salary! 



ClubMan said:


> Some employers might facilitate this (payroll deductions and employer contribution remitted to somebody who is not their nominated provider) but I would imagine that it's more likely with smaller employers and many employers will want to keep things simple for themselves.


Great, I'll look into it and hope for the best! I work for a fairly big company but in a small local/Irish office with decent finance people so there's a chance hopefully. I'll come back in a few weeks when I know more and post the outcome


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## F. Kruger (28 May 2007)

You could argue that you do not want to avail of the 'advsory'(?) service that goes along with the 5% of Contribution charge. That it is an 'execution only' service that you require.

Alot of employers may not know the difference, and may be willing to facilitate a second provider through payroll on the 1% AMC only basis.

You should ask, as the person in payroll/finance may see the benefit of a second PRSA provider, also.


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## zephyro (5 Jun 2007)

Another option appears to be the Quinn Life personal pension, are there any disadvantages with this compared to a PRSA?

I'm reluctant to go with this though if only because I already have a monthly savings plan with them, does anyone know of other pension providers with similar funds/charges?


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## long_boy (22 Jun 2007)

Let's say I go to an execution only broker and select BOI for my PRSA. Since the company PRSA is with BOI and the broker sets up the contract between me and the bank - are the 2 exactly the same?

If they were then payroll wouldn't need to set up another PRSA provider (1 for me and 1 for eveyone else) which they don't seem to want to do. This would be a perfect way of avoiding the 5% commision for people that don't need "advice". People that do can happily pay 5% and all the business goes to BOI so payroll are happy - would this work?


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## ClubMan (22 Jun 2007)

long_boy said:


> Let's say I go to an execution only broker and select BOI for my PRSA. Since the company PRSA is with BOI and the broker sets up the contract between me and the bank - are the 2 exactly the same?


I don't think so and believe that your _PRSA _will be separate from the employer's one unless they and _BOI _are willing to "integrate" it.


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## F. Kruger (22 Jun 2007)

As far as I know Bank of Ireland Life do not offer a 0%/1% PRSA, so you will have a problem there.

New Ireland, however (who BOI are in bed with), do offer a 0%/1% product and you may be able to incorporate this into the salary deduction scheme.

You will probably have to get the agreement of BOI and your employer to do this, unfortunately.


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## ClubMan (22 Jun 2007)

For what it's worth I did it the opposite way around in a job a few years back. I already had a 0%/1% _ES PRSA _arranged through a discount broker and my employer was happy to deal with the same broker and appoint _ES _as their _PRSA _provider. This meant that I could keep my existing PRSA going on the same 0%/1% basis, have contributions done via payroll (tax/_PRSI _relief at source) and others who joined the employer _PRSA _scheme were offered standard 5% (or maybe lower)/1% _PRSA _deals. However this is the reverse of what you are trying to do...


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