prsa costs

[daredevil]

ive been working in a hotel for a month and they just set up a prsa with bank of ireland,ive been reading the pensionsboard website and it says i have to be employed for 6 months before i can commence,is this a strict rule or is it up to the hotel? Also is there any costs/commision involved with varying contributions through boi standard prsa

 

[Guest]

> ive been reading the pensionsboard website and it says i have to be employed for 6 months before i can commence

I never heard of such a rule. Can you post a link to the specific are of the PB site in which this is explained? You can start a PRSA any time even if you are not employed and I'm not aware of any statutory time limit on joining an employer PRSA scheme.

> Also is there any costs/commision involved with varying contributions through boi standard prsa

There shouldn't be. Standard PRSAs have charges capped at 5% on each contribution and 1% annual management charge calculated on the full fund value. No other charges are allowed. In some cases it's possible to arrange for lower charges (e.g. 0%/1% is not unusual) by arranging the PRSA through an intermediary who is paid a once off fixed fee of a few hundred €. This may not be an option if you are joining a PRSA scheme already organised by your employer. However unless your employer is making contributions on your behalf you can always arrange your own PRSA and claim tax/PRSI&health levy relief yourself directly with Revenue/Welfare rather than getting these through payroll. See this topic for more information:

 

[daredevil]

reply

thanks for that,the 6mth thing appears to be for inclusion in retirement benefit, not for joining,it was on the prsa faq pdf,ive pasted it below oes an employer have to provide access to a PRSA?
An employer will be obliged to provide mandatory access to at least
one Standard PRSA

BUT
- the eligibility for membership of the scheme for retirement
benefits does not cover all employees,
- employees have to wait more than six months from joining the
company to be included in the scheme for retirement benefits,
- scheme members are provided with death in service benefits
only.

 

[Guest]

You are misreading that FAQ. The "six month" qualification should be read in conjunction with the with the preceding notes about occupational schemes operated by employers and not as a condition on the operation of PRSAs themselves!

An employer will be obliged to provide mandatory access to at least one Standard PRSA where

(a) he does not operate an occupational pension scheme; or

(b) he operates an occupational pension scheme for his employees,

BUT

- the eligibility for membership of the scheme for retirement benefits does not cover all employees,

- employees have to wait more than six months from joining the company to be included in the scheme for retirement benefits,

- scheme members are provided with death in service benefits only.

i.e. an employer who operates an occupational scheme which (among other things) excludes new employees for six months or more must offer at least one PRSA as an alternative.

Does this clarify things for you?