PRSA - reactivating

[MichaelDonal]

I'm extremely confused by something that should be really straightforward. Two years ago I moved from being a permanent employee to being a contractor, this also entailed a move of job. Previously when I started a new job I simply handed my new employer my PRSA details and said please use that and pay X amount per month.

As I'm now a contractor I operate under an umbrella company and pay a company to take care of my taxes, PRSI etc. This was all working out fine until I asked them to start paying into my PRSA (forgive my lack of understanding of knowledge of the correct terms here, I've a basic understanding of how this all works). They said they don't do that but recommended me a company that would - I was confused because I didn't think there was anything to 'do' - just put X amount into this PRSA and job done, right? But they sent on details of another company and I started down the road of talking to them - they convinced me my PRSA was probably under performing and I should go with them but I got a little put off by their instance that I sign over to them to take care of it. I just wanted to get my old one working again.

So I contacted Irish Life (who my PRSA was with originally) and about 3 weeks later they came back saying they'd no idea who I was. We ironed that out and the end result was they sent me details on re-setting up a PRSA but I just wanted to continue paying into my old one!

Time passed and every now and then I'd get annoyed and try to sort this out but to no avail - a couple of weeks ago I wrote to Irish Life again but haven't had a reply (their email response time is hilariously bad) .

Can someone please explain in total laymans terms (I mean you cannot go too basic for me here!) how I can get my old PRSA being paid into again? Is it like an account and I have the account details somewhere and just need to tell my umbrella company to pay X into this account? If so is this automagically done before tax? I don't want to set up a new PRSA I just want to pay into my old one like my other employers used to do - can it really be this difficult? I've lost two years of payments due to being confused by this!

 

[kevhenry]

If you want to restart your PRSA there should be absolutely no problem doing that. A PRSA is a lifelong account.

A signed written letter of instruction quoting your name, address, policy number along with any new bank details should suffice.

That said, if you're a company director you should consider setting up a directors scheme anyway but if you want to stick to your original PRSA you are absolutely entitled to do so.

They are probably saying it is underperforming just so they can move it and get paid on the transfer.

Kevin
www.thepensionstore.ie

 

[kevhenry]

The only other thing I can think of is if your previous employers scheme was a group corporate PRSA plan.

In that case, they may have offered lower charges that would only apply while you were an active member of that scheme.

In that case you wouldn't be able to restart it (would only usually apply to bigger companies).

Kevin
www.thepensionstore.ie

 

[MichaelDonal]

Thanks for replies, my PRSA is boilerplate standard one - nothing special at all about it. So, all I need to do is send my company (umbrella company) the details of my PRSA, sign it and tell them to pay X into the account each month?

 

[kevhenry]

The payroll administrator for your umbrella company should be able to do it for you and facilitate your deductions through payroll.

Kevin
www.thepensionstore.ie

 

[GSheehy]

@MichaelDonal

The company that does your taxes/admin may have Letter Of Appointment (they´ve appointed XYZ Company as a PRSA provider and agree to do salary deductions to them) with a single PRSA Provider.

It looks like they need to appoint ILAC as a PRSA Provider to facilitate your transaction.

They don´t have to, but they might.

Gerard

www.prsa.ie