Seeking Advice: Moving PRSA

[C_Pike]

Hello all – long-time reader, first-time poster. I've been doing some research on pensions, and I'd appreciate any advice on the following situation.

I’m in my mid-30s with a company PRSA from a previous employer, managed by Irish Life. It’s a standard company account with 1% fund and 1% allocation fees, currently valued at over €100k. It’s my only pension so far, as I was involved in a start-up exit and didn’t prioritize pension contributions until more recently.

I left the company linked to the PRSA last year and want to get things moving before the October deadline to make use of last year’s tax allowances. I have an income over €115k and plan to take full advantage of the available tax relief.

In terms of investments, I’m comfortable with self-directing and plan to focus on indexed equity funds. I don’t need something high-touch like Davy Select, as I won’t be stock-picking. I’m currently 100% invested in North American equities through the Irish Life PRSA Indexed North American Equity Fund. The 5-year annualized return is 14.39% before management charges (0.65%). The fund’s top holdings include Apple (6.5%), Nvidia (5.8%), and Microsoft (5.7%), so basically weighted on the S&P 500, which is the kind of exposure I’d want to maintain in the medium term. I'll take some of the advice on these forums and consider looking to global funds that diversify that.

I believe I could move the PRSA to another provider with similar fund options, though I’d need a certificate of comparison, which costs about €1,000 + VAT. Alternatively, I could purchase a pension retirement bond, which doesn’t require a certificate. However, I assume the most cost-effective option is to move the entire Irish Life PRSA into another PRSA with lower fees. I am ruling out moving to another type of pension investment (such as a personal pension) as I will want my employer to contribute at some stage.

I would appreciate views on providers and plans that you might have experience with, as well as advice on my general conception of the best way forward.

As for future contributions, can my current company make them directly via payroll if I move to a new PRSA provider? There shouldn’t be HR policy issues, but are there any technical blockers to consider?

Additionally, are there tax implications if I ask the company to divert future pay increases into my pension (e.g., would it be deemed salary sacrifice)?

Thanks in advance for any advice or assistance.

 

[S class]

You could open a new PRSA to catch the October 31st deadline.
I don't think that you would need a certificate of comparison to move a PRSA.

 

[GSheehy]

I’m in my mid-30s with a company PRSA from a previous employer, managed by Irish Life. It’s a standard company account with 1% fund and 1% allocation fees,

I don't think it's a PRSA that you had. Reads more like an Occupational Pension Scheme if your option is to transfer to a PRSA that needs a CoBC

See here

In terms of investments, I’m comfortable with self-directing and plan to focus on indexed equity funds. I don’t need something high-touch like Davy Select, as I won’t be stock-picking. I’m currently 100% invested in North American equities through the Irish Life PRSA Indexed North American Equity Fund. The 5-year annualized return is 14.39% before management charges (0.65%).

What you really mean is that you are comfortable with execution-only? In the context of the 0.65% AMC quoted here, the 1% fund and 1% allocation fees make no sense

PRBs can me more cost effective than PRSAs as the base cost for providers is higher on PRSAs.

As for future contributions, can my current company make them directly via payroll if I move to a new PRSA provider? There shouldn’t be HR policy issues, but are there any technical blockers to consider?

If the PRSA you choose now isn't with the same PRSA provider that your new employer has then it's unlikely that they will accommodated you in adding a PRSA from a different provider just for you.

See here