Can you have a pension scheme to take lump sum contributions only?

[Betsy Og]

So normally you have either your own scheme or a company scheme and you make AVC's in respect of it.

Am setting up a scheme at moment, t/f value from former employer scheme but no current employer scheme. Only want to contribute at year end for the tax break when I've sized up means - with the PRSI refund now available this is as tax efficient as monthly contribution.

I suppose I could set up a nominal monthly contribution and make AVC's in respect of that, but I may get on current employer scheme in a couple of years so I want to keep it simple (not paying bits and bobs here and there and having multiple schemes on the go - probably only attract extra fees). The "AVC/Lump Sum" scheme will continue when the employer scheme gets going as my tax efficient top up option.

Thinking of Eagle Star concentrated 5*5 scheme - a decent amount of risk but time is on my side, am happy to take this risk.

Any views as to whether I can set up "lump sum" scheme only??

 

[Conan]

Under Revenue rules you cannot establish a pension scheme merely to accept a Transfer Value from a former scheme. You must first establish a regular contribution (even modest) scheme, when that is approved you can then seek the transfer value from your former scheme.
In you are in employment now, but just not included in their scheme (why?) then you should have facility to effect a PRSA. If you establish a PRSA you can then seek a Transfer Value.
If at some time in the future you join your Employer's scheme, then you can cease to contribute to the PRSA (make it paid-up) or transfer it into your Employers scheme.

 

[jpd]

You do not make a PRSA "paid-up". You can stop and restart contributions as and when you like, without any penalty or fee being charged.

 

[Betsy Og]

Thanks for the replies. While basically I want to contribute on lump sum basis, and have transfer in from old employer scheme, it looks like I'll have to:

1 start a regular contributory scheme (even if fairly nominal)
2 then have my former pension fund transferred into the new fund &
3 contribute AVC's as required to max tax relief & when can determine funding capacity.

I presume that if I get on my employer scheme I can keep the above scheme running along (might reduce regular contributions to absolute nominal) to use for my AVC.

Do I need a PRSA per se to achieve the above, as opposed to a personal pension plan (i.e. not an employer scheme)? - I presume I'd go for a PRSA anyway due to potential to switch funds fee free down the line (as long as into another PRSA I understand its fee free)