PRSA, why via Broker?

[dickvandyke]

Hi, opening a PRSA soon, have been reading posts here for about a week and to be honest I'm a bit lost, just going to go pick one from Eagle Star or Friends First and roll with it!

My question is- Can I just do it directly with the providers mentioned above? If not, why do I need a broker?

Also, my employer 'talks' about starting something up. Can he start contributing to my PRSA when he gets his finger out or do I need a special one in the first place to allow this at a later date?

 

[boaber]

Also, my employer 'talks' about starting something up. Can he start contributing to my PRSA when he gets his finger out or do I need a special one in the first place to allow this at a later date?

By 15 September 2003 all employers were required to have entered into a contract with a PRSA provider to allow access to at least one Standard PRSA to all “excluded employees” on and from that date. This requirement is a key component in the drive to increase private pension coverage in Ireland. The Board has a responsibility to enforce this mandatory access requirement and regards non-compliance as a serious matter

Your employer could face prosecution if he does not comply!

 

[dickvandyke]

Thanks, what is an "excluded employee"?

Anyone have any feedback on my first question about the brokers?

 

[CCOVICH]

In most cases you can deal directly with the provider.

There may be advantages in using a broker-dicounted fees for one, and valuable advice (if they deal with a range of providers) for another.

I'm sure the Eagle Star and Friends First websites have details on how/where to buy their products.

 

[boaber]

Thanks, what is an "excluded employee"?

according to the IAPF website an Excluded Employee is "An employee who will not be eligible for membership of an occupational pension scheme within six months of joining service, and who must therefore be offered membership of a standard PRSA."

 

[Fanny]

Hi,
most company PRSAs charge 5%/1%, so check out how much your employer would contribute and do they only contribute if you join the company PRSA set up by them as it was in my case. None of my employers ever contributed to my 0%/1% PRSA, it almost seems to be a deal between the companies and the tied bank agents who look after the company PRSA schemes. Some of the money your company will contribute to your PRSA is simply going into the charges that way! And a PRSA is not exactly a LOW-COST pension as often advertised, especially not if 5% of your money goes before every contribution. I know that a non-commission PRSA does not entitle you to advice from the broker. However, the advice I got from the tied banker who was "looking after" the company scheme was non-existing (in one case wrong advice was given, and I was told 0%/1% PRSAs do NOT exist!) It is easy to just choose the default investment strategy. So beware of the commission-driven company PRSA advisors and always ask about the charges...

Fanny