Novice Pension Question

B

Big Daddy

Registered User
Messages
7
Hi folks, just looking for some guidance.

I work in the private sector and have asked my Accounts manager:

"I am currently looking at my options for setting up a private pension with companies like Zurich and Royal London. What information would you require from me so that I could set it up?"

The response was

"Do you want the pension to come out from your salary and be paid directly to your pension provider?
In that case we will need a letter from the pension provider with the amount to be paid to them and their bank details."

Is this process correct? To me this reads that my pension will be taken from my net salary figure after taxes have been paid. Maybe I am reading the email response incorrectly.

Any advice on the questions I should be asking are much appreciated and if anyone can advise on any pension providers who I could organise a chat with would be much appreciated.
 
@Big Daddy

It sounds like the company doesn't have a Pension or PRSA Scheme available to employees and that they would not be contributing to your pension?

If not, you/they could set up a PRSA Scheme with a Letter of Appointment from your chosen PRSA Provider. That LoA would include a Direct Debit on the company account so that the employer can deduct your contribution via payroll (so tax relief is given at source) and then pay the gross contribution to the PRSA Provider. I'd be doubtful if a PRSA Provider would accept an EFT monthly from the company to pay one pension contribution.


Gerard

www.prsa.ie
 
GSheehy said:
It sounds like the company doesn't have a Pension or PRSA Scheme available to employees and that they would not be contributing to your pension?
Click to expand...

If the company was paying a % and had provided an option to join their PRSA Scheme, could you not still set up your own PRSA directly and request they pay in your contribution to wherever is needed?
 
Employers are obliged to at least offer a PRSA facility (whether they contribute or not) and facilitate deduction from salary of any Employee contribution. I suggest you ask your Employer if they have a PRSA scheme, and if not, remind them that they are legally obliged to facilitate salary deduction to a PRSA.
 
50andOut said:
If the company was paying a % and had provided an option to join their PRSA Scheme, could you not still set up your own PRSA directly and request they pay in your contribution to wherever is needed?
Click to expand...

If an employer has a PRSA Salary Deduction Scheme set up with ABC Company (ie they have appointed ABC Company as a PRSA Provider), you can set up a PRSA with whatever intermediary you want to deal with. ABC Company just add you to the scheme under the agency of your preferred intermediary and use the one Direct Debit to collect the contributions.

If an employer has a PRSA Scheme set up with ABC Company and you want to set up a PRSA with XYZ Company, the employer would have to appoint XYZ as a PRSA Provider and set up a separate Direct Debit. There's no obligation on the employer to do this, but the vast majority of them would have no issue with setting up a second PRSA Provider.

Gerard

www.prsa.ie
 
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