Finance Bill 2022: unlimited employer contributions to PRSAs permitted from 2023?

I've 2 other pensions. Both have pension properties, so I know very little about other investments.
 
This is my understanding of what's happening in this space at the moment.

The product providers were waiting to see how this 'too good to be true' scenario with PRSAs plays out with Revenue. If the new rules are not going to be changed then the competition for large once-off company contributions to PRSAs will intensify. The lure of hundreds of thousands of Euro moving from company accounts to PRSAs, in one payment, has product providers salivating. But, they can't just introduce a new pricing structure at will, it has to go through a process with the Pension Authority.

Product providers have to decide what pricing structure/s they want to 'buy' approval on. There's a risk that the new rules on PRSAs will change so they're a bit cagey on the number of new structures they want to buy and where to set their base charge. PRSAs are more expensive to the product providers than Master Trust or other pre/post retirement products.

What I think has happened already is that one provider has decided that they're not going into the Master Trust (MT) space at all so they've repriced their PRSA to compete with the current Master Trust offerings. The MT providers have not all shown their full hand yet on the pricing of MTs though.

The expediency of this repricing would suggest that the structure was there already but the provider has just changed how they pay the intermediary from the product whilst having no effect on what the end consumer buys. Maybe someone else can clarify that.

So, assuming Revenue don't shift the goalposts, you can expect competition in the once-off / large lump sum PRSA space to intensify. This is good for the consumer because there are no exit charges allowed on PRSAs or MTs so they will be able to move without penalty at any time. I'd expect that in the next 3/4 months that we might see everyone's hand in the pricing.

Gerard

www.prsa.ie
 
Hi Gérard, so if the government change the rules, its best to move now. I have monies within a company that would suit a transfer into a Prsa. The rules can't change retrospective can they?
 
I’ve spent much of the last year looking for investments which offer the prospect of genuine positive impact rather than simply sticking an ESG label on an existing fund. Lots of good options available in the “E” space and in particular with renewable energy projects.

I was looking for something specifically in the “social”’space and I’m delighted to have found a REIT which is dedicated to investing into social care housing and healthcare facilities. This was something my Aunt needed during her life and my son will need too.

Now one of the investment funds in my own pension has over a billion invested in residential Social Housing in the U.K. mainly through inflation linked government contracts. The trailing P/e is 5.61 and the current yield is 9.24%. It’s currently trading at a discount to net asset value of over 45%.

Yes the cost of a PRSA is important, but it’s never the only factor.
 
Can I open a new Prsa and keep my existing ssap all as part of the same limited company. The ssap has a self directed property.
 
So, I've been told the AMc for a Prsa is 1.25%. Can anyone advise any better. 200k imvestment.
 
Designjet said:
So, I've been told the AMc for a Prsa is 1.25%. Can anyone advise any better. 200k imvestment.
Click to expand...

If you're looking for a PRSA with which you can buy a commercial property, as per your previous post, an annual fee of 1% would be possible. But if you're happy to invest in a PRSA in index-tracking funds, the annual charge would be 0.67%.
 
LDFerguson said:
If you're looking for a PRSA with which you can buy a commercial property, as per your previous post, an annual fee of 1% would be possible. But if you're happy to invest in a PRSA in index-tracking funds, the annual charge would be 0.67%.
Click to expand...
Yes, I'm thinking the index tracking funds, where can I get the 0.67 AMc?
 
Designjet said:
Yes, I'm thinking the index tracking funds, where can I get the 0.67 AMc?
Click to expand...
See here:

Finance Bill 2022: unlimited employer contributions to PRSAs permitted from 2023?

It looks like this bill is due to be signed into law. Am I correct in saying that companies can now make larger contributions to an employees pension? To date there have been no amendments to the bill. So if President Higgins signs it in the next week or two, then yes employers will be able...
www.askaboutmoney.com
Liam (@LDFerguson) of www.ferga.com sorted me out.
 
Last edited:
Mods. It might be useful to split out the prsa price and fund discussion. To leave this thread on the finance bill change
 
If ones employer is not onboard with making large payments into your prsa, is there anything typical employees can do to benefit from this funding opportunity.
 
SPC100 said:
If ones employer is not onboard with making large payments into your prsa, is there anything typical employees can do to benefit from this funding opportunity.
Click to expand...
No. The change in legislation only benefits employer contributions. The tax relief brackets still apply for personal contributions.

You can of course put in more than the allowed % of salary and claim the tax relief over a number of years. This is nothing new though.
 
You must log in or register to reply here.
Back
Top