More than one PRSA / PRSA AVC?

[gunnerfitzy]

Family member is employed by large multinational and enrolled in pension scheme. Also contributing to AVC set up for the pension scheme with same provider. She's unable to contribute any more than 25% (for age) to combined pension and AVC. However, this is based on salary only and does not include bonuses. So there is scope to contribute more and maximise tax relief.

Can she open an additional PRSA with another provider - e.g. Execution only Zurich?

If so, should this be a new PRSA or PRSA AVC? If it could be either, is there any advantage/disadvantage of one over the other.

TIA

 

[ClubMan]

Family member is employed by large multinational and enrolled in pension scheme. Also contributing to AVC set up for the pension scheme with same provider. She's unable to contribute any more than 25% (for age) to combined pension and AVC. However, this is based on salary only and does not include bonuses. So there is scope to contribute more and maximise tax relief.

Why doesn't she just manually make the additional contributions to the existing occupational scheme? Can't they facilitate this?

 

[Dave Vanian]

If so, should this be a new PRSA or PRSA AVC?

It must be an AVC PRSA or, as ClubMan suggests a lump sum AVC to the main scheme. She should evaluate both the main scheme AVC facility and an external AVC PRSA to see which suits her better in terms of fund choice and what the charges are on either. In terms of tax relief or benefits at retirement, there's no difference between an AVC to the main pension or an AVC PRSA.

 

[gunnerfitzy]

Why doesn't she just manually make the additional contributions to the existing occupational scheme? Can't they facilitate this?

They can do lump sum payments but each one has to be done manually. The preference is firstly for a salary deduction, or alternatively a monthly direct debit from bank a/c both neither of which are available on the existing scheme past 25% of basic salary.