PRSA to PRSA AVC transfer?

C

CryHard

New Member
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Hello,

Current situation:

1. Have new ireland PRSA with my company, where my company contributes
2. Have personal execution only prsa with Davy, as the new ireland one sucks in terms of funds available

Later in the year my company is retiring the current PRSA they have and moving us to a defined contribution occupational pension scheme under "mercer" but still with new ireland.

My intent was to simply move the New Ireland PRSA into my existing PRSA but, according to Davy, I can no longer contribute to my normal PRSA but have to open a PRSA AVC.

Fair enough, but when asked if then they will be able to transfer my new ireland prsa inside the "prsa avc" product they said they can't help.

Is this a davy thing or by law I cannot transfer PRSA --> PRSA AVC?
 
Davy are correct and it's law. If you're part of a DC Occupational Pension Scheme and want to contribute more you can either use whatever AVC facility your employer provides - probably New Ireland - or an AVC PRSA of your own choosing. It has to be an AVC PRSA because it's invisibly linked to the main pension scheme - contributions limits calculated by reference to total of main scheme contributions and AVCs, you must retire both main scheme and AVCs at the same time etc.

So when this happens, you can transfer your current New Ireland PRSA fund into Davy with no more contributions and then set up an AVC PRSA for the future.

Regards,

Liam
www.FergA.com
 
LDFerguson said:
Davy are correct and it's law. If you're part of a DC Occupational Pension Scheme and want to contribute more you can either use whatever AVC facility your employer provides - probably New Ireland - or an AVC PRSA of your own choosing. It has to be an AVC PRSA because it's invisibly linked to the main pension scheme - contributions limits calculated by reference to total of main scheme contributions and AVCs, you must retire both main scheme and AVCs at the same time etc.

So when this happens, you can transfer your current New Ireland PRSA fund into Davy with no more contributions and then set up an AVC PRSA for the future.

Regards,

Liam
Click to expand...
well I guess if I can move the old new ireland prsa into my ( now old) davy prsa then that's fair enough - I wonder why though davy did not propose this path to me in the first place... I'll have to reach out to them again.

Thanks Liam.
 
CryHard said:
I wonder why though davy did not propose this path to me in the first place
Click to expand...

Is it anything to do with the level of contribution on their non-standard PRSA? I mean, if the following is true and the values are low then it might not be the right thing to do.

As seen on Reddit "I was advised that their fees are increasing "at some point" in 2024 from 0.75% up to 2.0% for a fund value below €50,000 and 1.0% for a fund value over €50,000."

That would bring the TER to 2.22% or 1.22% for their global index tracker, depending on size of fund. That's a big increase from 0.97% + transaction cost.
 
GSheehy said:
Is it anything to do with the level of contribution on their non-standard PRSA? I mean, if the following is true and the values are low then it might not be the right thing to do.

As seen on Reddit "I was advised that their fees are increasing "at some point" in 2024 from 0.75% up to 2.0% for a fund value below €50,000 and 1.0% for a fund value over €50,000."

That would bring the TER to 2.22% or 1.22% for their global index tracker, depending on size of fund. That's a big increase from 0.97% + transaction cost.
Click to expand...
Yeah I might need to look into standard life at this point, since I have to open a new account anyway, just need to find a broker for them.
 
GSheehy said:
Is it anything to do with the level of contribution on their non-standard PRSA? I mean, if the following is true and the values are low then it might not be the right thing to do.

As seen on Reddit "I was advised that their fees are increasing "at some point" in 2024 from 0.75% up to 2.0% for a fund value below €50,000 and 1.0% for a fund value over €50,000."

That would bring the TER to 2.22% or 1.22% for their global index tracker, depending on size of fund. That's a big increase from 0.97% + transaction cost.
Click to expand...
Tiered charging structures is becoming the norm on the self directed PRSAs. It just not worth their while for small PRSAs. You can expect to pay up to 3% amc on a PRSA <€50,000 with ITC/Conexim. These aren't unit linked or benefit from economies of scale. They are effectively saying they are closed to the smaller policies, they would prefer you use a life company in those instances.


Steven
www.bluewaterfp.ie
 
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