But are you so sure that buying an annuity from another provider will be as good value as directly from the PS employer?
How could I be? How could I know what annuity rates or NS rates will be in 20/30 years time? I'm saying it's an option under current rules.
Maybe the HSE won't have the funds/resources to 'bump up everyone's salary' in 20/30 years time.
If the advisors to the PS Scheme are telling you that an AVC and AVC PRSA are treated differently on the options you might have as regards buying benefts from each product at retirement, then maybe, they want you to buy one over the other. I don't know of any (pensions manual) impediment that favours one over the other. Maybe it's a bit like that line about salary deduction being 'handy' but leaving out the part about the potential cost savings to the customer by doing the alternative.
And, if you are still really concerned about this, in my opinion, misguided anomaly then there's nothing to stop you setting up two separate PRSA AVCs with different policy numbers.
But, again, we've no idea what the pension rules will be in 20/30 years time. We can only work with the rules as we understand them now and base our choices on having all the relevant information to make an informed decision now.
Gerard
www.prsa.ie