# PRSA versus AVC



## cleopatra (5 Mar 2008)

Hi, 
Im in my late 20's and having had a career change I am now settled in teaching. I wish to set up a means of topping up my pension for when i retire and have heard differing views on PRSA's and AVC's. 

Can anyone tell me all things considered which is the better option and has anyone any info on the best companies offering such services. i.e whos doing the best deal. 

Many thanks.


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## LDFerguson (6 Mar 2008)

You actually have three choices: - 

(1) Buy back years in the superannuation scheme.  

(2) Make Additional Voluntary Contributions (AVCs) using whatever broker your union has appointed, possibly Cornmarket, by salary deduction.  

(3) Make AVCs using a PRSA of your own choosing, by Direct Debit rather than salary deduction.

I don't know your personal circumstances, but in most cases, option (1) is the most attractive, then option (3), then option (2). 

Have a good browse around the Public Sector Pensions area of Askaboutmoney as there are discussions of the above options there.


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## Lemurz (12 Mar 2008)

My employer offers an AVC option with contributions managed by KBC, whose perfomance has been very poor.  Do I have any other option than KBC for my AVCs or must I accept my employers choice of investment manager?


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## Redzer (25 Mar 2008)

I signed up for an Eagle Star AVC PRSA last month through a personal direct debit as they had better performance and lower commission than the AVC route offered by my Employer. Its a bit more admin but I feel it'll be worth it. LA Brokers have links on their website to access a few alternatives.


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## Lemurz (14 Jul 2009)

Redzer said:


> I signed up for an Eagle Star AVC PRSA last month through a personal direct debit as they had better performance and lower commission than the AVC route offered by my Employer. Its a bit more admin but I feel it'll be worth it. LA Brokers have links on their website to access a few alternatives.



Hi Redzer,

So it is possible to make AVC payments to other providers outside of your employers scheme?

I thought you could only apply for a PRSA if your employer didn't offer an option.

How do you obtain tax relief on your contributions?


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## Protocol (14 Jul 2009)

Yes, it is possible to have an AVC PRSA as well as your original AVC.

You can't use an AVC as a personal pension if you have an occupational pension, but you may use a PRSA as an AVC vehicle, if you can make sense of that.

You do not get tax relief through payroll.

You tell the Revenue about your second AVC and they increase your tax credits.


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## willbee (2 Aug 2009)

Just a quick question... Do I have to tell the Revenue every year or once you tell them once do they give you the tax credits automatically thereafter??


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## Protocol (2 Aug 2009)

No, you don't have to tell them every year.

Unless your contributions change.


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