When is a Prsa an Occupational Pension ?

[JoeRoberts]

PRSA and commission

Heya, I have a PRSA through work, and I have a contact provided from work to set it up.. This PRSA was setup Feb 2024 and the advisor set this up, As I am 50 this year I want to up my AVC's from 25% to 30% So have a meeting with him on Thursday to talk about this, not sure why I just want to...

www.askaboutmoney.com

Following this post from G Sheey, just wondering what defines it as occupational. I had assumed all Prsa were not occupational pensions for the purposes of the future tax free lump sum deduction in respect of a redundancy.

 

[redstar]

Have a look here ... https://pensionsauthority.ie/lifecycle/private_pensions/personal_retirement_savings_accounts_prsas_/

 

[redstar]

I think there is confusion here though. It says...
"A PRSA is an individual defined contribution pension arrangement."

Yet, my employer for example, has a PRSA called "<EmployerName> Standard Group PRSA Scheme", which sounds like an occupational DC scheme.

 

[LDFerguson]

Contractually all PRSAs are personal contracts between Mary Bloggs and the PRSA provider. Even if Mary's employer operates a group PRSA scheme, deducts contributions from salary and makes employer contributions, the PRSA is still Mary's personal property.

 

[redstar]

... and if the employee leaves the employment, can they still contribute to that PRSA?

 

[JoeRoberts]

So can everything with a Prsa in the name be considered not to be an occupational scheme ?

 

[redstar]

Yes.

 

[ClubMan]

Isn't an AVC PRSA treated differently to a "regular" PRSA in terms of when and how benefits can be taken?

 

[LDFerguson]

... and if the employee leaves the employment, can they still contribute to that PRSA?

In theory, yes and some PRSA providers will happily facilitate this. It would be up to the individual, their financial broker or accountant to make sure that they can qualify for tax relief on such contributions.

I'm aware of two PRSA providers who will not facilitate the continuation of contributions by an individual to a PRSA which is part of a group PRSA scheme after the individual has left the employment. They insist that the individual sets up a new PRSA for new contributions. But this is a systems and process issue of the PRSA providers; not a Revenue or legal rule.

 

[LDFerguson]

So can everything with a Prsa in the name be considered not to be an occupational scheme ?

Yes, an Occupational Pension Scheme and a PRSA are two different things.

 

[LDFerguson]

Isn't an AVC PRSA treated differently to a "regular" PRSA in terms of when and how benefits can be taken?

It is indeed. An AVC PRSA must follow the rules of the Occupational Pension Scheme to which it is linked.