occupational pension and eaglestar

M

mango7

Registered User
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I have at present an occupational pension of 10% of my wages going into an irishlife consensus pension.
Rather than paying an avc through them, can i set up a prsa through eaglestar instead or is this allowed with an occupational pension.
A 5% commission would be charged with the avc, where as if i set up a prsa with eaglestar through Labrokers they offer a 0% contribution. Apparently over a long period of time this would be a huge saving. Desperate for advise. thanks
 
Yes you can set up an AVC PRSA of your own choosing. You will pay it gross by Direct Debit and claim your own tax and PRSI relief.
 
Thanks for your reply...
Can i not pay monthly through my wages and the tax come straight out through payroll
 
I've found out that by transfering your AVC fund to your Eagle Star PRSA you will pay a MARKET VALUE ADJUSTMENT charge, that at present is 15% from Irish Life, of your fund value which is deterring me from doing what you are thinking of doing Mango7, so do your homework first.
 
LDFerguson said:
Yes you can set up an AVC PRSA of your own choosing. You will pay it gross by Direct Debit and claim your own tax and PRSI relief.
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Is there not some restriction (on tax relief) on such a "standalone" PRSA being used for AVCs when the occupational scheme offers an AVC facility? I thought that here was to encourage people to encourage employees to participate in their occupational schemes?
mango7 said:
Thanks for your reply...
Can i not pay monthly through my wages and the tax come straight out through payroll
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Yes - IF your employer will faciliate such an arrangement for your PRSA. But this would often be unlikely when they are already offering an occupational scheme with an AVC option.
willbee said:
I've found out that by transfering your AVC fund to your Eagle Star PRSA you will pay a MARKET VALUE ADJUSTMENT charge, that at present is 15% from Irish Life, of your fund value which is deterring me from doing what you are thinking of doing Mango7, so do your homework first.
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MVAs normally apply on With Profits funds. It should not be the case with other (e.g. unit linked) funds.
 
ClubMan said:
Is there not some restriction (on tax relief) on such a "standalone" PRSA being used for AVCs when the occupational scheme offers an AVC facility? I thought that here was to encourage people to encourage employees to participate in their occupational schemes?
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No - if a person evaluates the relative merits of their own employer's AVC arrangement and a standalone AVC PRSA and decides to go with the AVC PRSA, there's no monetary difference in tax treatment. You just have to apply for your own tax and PRSI relief.
 
Thank you for your replys........
My pension with irishlife is an exempt consensus pension, what does the exempt mean?
can irish life stop me doing a avc with another company? do i need to tell them?
do i have to pay avc annually, why not weekly?
 
mango7 said:
Thank you for your replys........
My pension with irishlife is an exempt consensus pension, what does the exempt mean?
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Tax exempt perhaps? Because it's a pension? As opposed to a regular investment which would be subject to tax along the way or at encashment?
can irish life stop me doing a avc with another company? do i need to tell them?
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Didn't Liam already answer this question above?
do i have to pay avc annually, why not weekly?
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You don't have to pay it annually. You should be able to do it monthly. Not sure if many pension providers facilitate more regular than monthly contributions? You will have to inform Revenue in order to get tax relief via your statement of tax credits. You will only be able to claim PRSI relief at the end of the tax year after tax relief has been claimed.
 
Thank you clubman, very helpful
Sorry for so many questions, so much info to read it becomes confusing........!
 
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