Unhappy with company pension administrators - set up my own PRSA?

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BudgetMom

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Hi folks, I’m looking for a steer on how best to manage my pension.

I’m a member of my company DC pension scheme - it is a mandatory scheme with employee and employer contributions increasing with length of service. I’ve also been making AVC’s as I’ve had unpaid leave due to maternity leave so I’m conscious I’ve gaps to make up. The issue I’m having is I find the administrators to be difficult to deal with - I’ve had issues with errors in my benefit statement, my contribution rate and just in general I feel there is a bad service despite this being a large company fund. I’m starting to think I should stop making the AVC’s and set up a separate PRSA where I’ll hopefully get a better service? I’ve no issue making tax returns but is there anything else I’m missing?

For the company scheme I was reading up on it today and it looks like my employer pays the fees so that’s something but I think I’d rather pay fees and have some control over my pension - also there might be better options other than the strategies available to me in the group scheme. I’d be grateful for any feedback and advice on offer.
 
Are you suggesting to leave the company DC scheme altogether? That is a bad idea.

Or are you suggesting to set up a PRSA-AVC, to replace your current AVC?
 
Protocol said:
Are you suggesting to leave the company DC scheme altogether? That is a bad idea.

Or are you suggesting to set up a PRSA-AVC, to replace your current AVC?
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No I don’t want to leave the DC scheme more that I want to do my own thing with my AVC - I’m at 10% AVC currently and looking to max this to my age limit. Can I not be in the DC and a PRSA?
 
Don't think the grass is greener on the other side. The service levels in most life companies is very poor. You will have to set up a PRSA AVC, pay higher charges and likely still get bad service. Fees and fund choice/ performance is more important than service.
 
The pension companies say that you cannot have more than 1 scheme on the go at the same time. But in saying that, I have never found it in writing on Revenue's website or in the Pension Act. Is is possible I may have missed it. I have also seen Public Servants paying into 4 or 5 different schemes at the same time, if for example they get seconded into a different area etc.
BTW, Since Covid I have found the level of service from Zurich to be appalling. I am told they are now all just as bad.
 
Steven Barrett said:
Don't think the grass is greener on the other side. The service levels in most life companies is very poor. You will have to set up a PRSA AVC, pay higher charges and likely still get bad service. Fees and fund choice/ performance is more important than service.
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That seems like a very sweeping and negative generalisation.
I've had pensions with Irish Life, Eagle Star, Standard Life and others and never had major issues with any of them.
Other than needing to shop around as charges fell and there was better value to be had by switching.
 
ClubMan said:
That seems like a very sweeping and negative generalisation.
I've had pensions with Irish Life, Eagle Star, Standard Life and others and never had major issues with any of them.
Other than needing to shop around as charges fell and there was better value to be had by switching.
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I have been working in this industry for 25 years and deal with the life companies on a daily basis. Service levels are at the lowest levels they have ever been at. It's usually just one company is having a bad run of it, now it's all of them. They can't get staff and retain them.
Towger said:
The pension companies say that you cannot have more than 1 scheme on the go at the same time. But in saying that, I have never found it in writing on Revenue's website or in the Pension Act. Is is possible I may have missed it. I have also seen Public Servants paying into 4 or 5 different schemes at the same time, if for example they get seconded into a different area etc.
BTW, Since Covid I have found the level of service from Zurich to be appalling. I am told they are now all just as bad.
Click to expand...
The OP won't be allowed to set up her own company scheme and that is not what she is asking either. She wants to set up a PRSA AVC.
 
An example of service from life company 1 - I sent in a proposal form on 1 June. It hasn't even been looked at yet.

Another was sent to another life company on 16 May. Hasn't been looked at yet.
 
You can be in the company scheme and also have an AVC PRSA. This type of PRSA is linked with the company scheme and can only be drawn down at the same time you receive pension benefits from your company scheme. Apart from that you have full control of where and how much you invest into it. Your only limit is the yearly age tax free allowance. Your employer has no access to your PRSA.
You are obviously interested in taking an active role in maintaining your AVC. With this in mind you should deal through an execution only broker. prsa.ie is one such broker.
 
Steven Barrett said:
An example of service from life company 1 - I sent in a proposal form on 1 June. It hasn't even been looked at yet.

Another was sent to another life company on 16 May. Hasn't been looked at yet.
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One anecdotal delay obviously destroys my argument that you're making sweeping generalisations.
 
Steven Barrett said:
Don't think the grass is greener on the other side. The service levels in most life companies is very poor.
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Fact.

Steven Barrett said:
An example of service from life company 1 - I sent in a proposal form on 1 June. It hasn't even been looked at yet.

Another was sent to another life company on 16 May. Hasn't been looked at yet.
Click to expand...

Fact.

Lest anyone be in any doubt about how bad it is/has been, just drop an email to the intermediary that you deal with, if you have one, and ask.

28% of complaints to the FSPO in 2022 were for woeful customer service / maladministration. Even the FSPO was giving out about it because they really shouldn't have to deal with product provider created service chaos. Sure, there are some external factors that are outside their control but this is ongoing for years. FSPO would be way more time efficent if that percentage was where it probably should be, around 10%.

And, you know it's really bad when the main representative body for intermediaries does an editorial in its (product provider funded) magazine about how terrible service has been, and continues to be, from those paying product providers.
 
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Hi everyone, just to follow up on this - I have a call with the investment manager to discuss my pension and strategy etc. I think in comparison to the timelines described above I’m actually doing well on response time. I’ve also spoke with a trustee of the scheme so that might also account for the follow up. Hopefully I’ll get some reassurance on the scheme and not need to fly solo - probably better to have someone to blame other than myself if returns are shocking!
 
Steven Barrett said:
I have been working in this industry for 25 years and deal with the life companies on a daily basis. Service levels are at the lowest levels they have ever been at. It's usually just one company is having a bad run of it, now it's all of them. They can't get staff and retain them.

The OP won't be allowed to set up her own company scheme and that is not what she is asking either. She wants to set up a PRSA AVC.
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I've been talking with a few people I know who work in customer service in a couple of the life insurers, and they've all been telling similar stories of people leaving to decide what to do with their lives, or starting dream jobs that aren't as secure or well paid as the dreamy monotony of processing pension applications. Covid seems to have made a lot of younger people reassess their lives and livelihoods. The industry are having to change how they view themselves as employers in customer service, but they don't seem to be ready to treat customer service people the same way the do actuaries.
 
I’ve always been a member of a company schemes.

The service has always verged from terrible to so-so.

It doesn’t really bother me though. I aim to have no interaction with them. I don’t change investment strategy, I don’t look at it, I don’t log-in, I don’t parse the annual statement.

I have one investment strategy and it never changes.
 
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