Re: AVC PRSAs
Show me where it exists in legisaltion? It doesn't. It was based on a Revenue 'interpretation' ..one that the Pensions Board don't obviously agree with, if you read between the lines of their statment on same of September 2004 :
Read for yoursef:
" In Section 787A(1)(i) and (ii) of Chapter 2A of the Taxes Consolidation Acts, 1997 (the “TCA”) as amended, there is an interpretation of additional voluntary contributions which, for Revenue purposes, means contributions made to a PRSA by an employee, ......These circumstances should not be confused with the traditional meaning and intention of additional voluntary contributions under the Act, other than Part X.
The Board and the Revenue Commissioners worked together to formulate a series of Frequently Asked Questions to assist Providers in the execution of their Revenue obligations and PRSAs and this document was circulated, on behalf of the Revenue, by the Board to all Providers in November 2003 for information. Some Providers have taken a certain interpretation in respect of Q&A 16 – What are the obligations of Providers in relation to AVC PRSAs?
.....
The interpretation taken by some people has led to unnecessary media reporting and articles that have led to an ‘uneven’ playing pitch among Providers and confusion among consumers.
...........
Notwithstanding the interpretations being taken by some Providers, Revenue have confirmed that their position in respect of additional voluntary PRSA contributions is clearly outlined in FAQ 16 and they are committed to facilitating all who wish to make contributions to PRSAs and they continue to remove obstacles to the progress of PRSAs and introduce initiatives which might encourage their success. This commitment does not remove any of the responsibilities of either the trustees of occupational pension schemes or PRSA Providers in respect of monitoring contribution or benefit levels in respect of additional voluntary PRSA contributions as set out in Q&A 16."
Doesn't exactly sound like a ringing endorsement of the 'stand alone' AVC PRSA to me!