PRSA Types

There are two types of PRSA: standard, and non-standard.

The main differences between them concern charges and investment options.

A standard PRSA has maximum charges of 5% on contributions paid and 1% per year on the total assets value, and can only be invested in pooled funds (pooled funds are collective investment schemes in which investors’ money is pooled to buy a portfolio of assets, including government bonds, deposits, property and stocks).

A non-standard PRSA does not have maximum limits on charges and allows investments in funds other than pooled funds. (Source CSO).

 

Employers’ obligations to provide access to a PRSA

Which employers must offer PRSAs?

All employers are required to enter a contract with a PRSA provider to provide access to at least one standard PRSA for all ‘excluded employees’.

An employee is considered an ‘excluded employee’ if:

• their employer does not offer an occupational pension scheme, or
• they are included in an occupational pension scheme for death-in-service benefits only, or
• they are not eligible to join the company’s occupational pension scheme or will not become eligible to join the scheme within six months from the date they began work there, or
• they are included in an occupational pension scheme that does not permit the payment of additional voluntary contributions (AVCs) by the members.

 

Does an employer have to contribute to PRSAs on behalf of their employees?

Employers may contribute to employees’ PRSAs but are not obliged to do so.

 

What must an employer do to provide access to a standard PRSA?

An employer must:

• enter into a contract with a PRSA provider (there is no charge for doing this),
• notify ‘excluded employees’ that they have a right to contribute to a standard PRSA,
• allow the PRSA provider or intermediary reasonable access to ‘excluded employees’ at their workplace,
• allow reasonable paid leave of absence, subject to work requirements, so that ‘excluded employees’ can set up a standard PRSA,
• make deductions from payroll at the request of employees and remit these to the PRSA provider (employers cannot charge for deducting and remitting contributions),
• advise employees in writing (normally on their payslip) at least once a month of their total contribution including the employer’s contribution, if any.

If an employer has a small workforce of less than five employees, is access to a standard PRSA still necessary?

 

Yes, all employers, regardless of the size of their workforce, must provide access to a standard PRSA if those employees fall into the category of ‘excluded employees’.

 

If an employer has a number of part-time, fixed-term contract and seasonal employees, is access to a standard PRSA for these employees still necessary?

Yes, all employees, whatever their status, must be given access to a standard PRSA if they fall into the category of ‘excluded employees’.

 

Does an employer have to provide access to a PRSA even though there is an occupational pension scheme in place?

No, provided all employees – including full-time, part-time, seasonal, temporary, contract or casual employees – are eligible to join the scheme for pension benefits within six months of joining employment and the scheme permits the payment of AVCs.

Even if there is only one excluded employee, the employer must provide them with access to a standard PRSA.

 

What about additional voluntary contributions (AVCs)?

If an employer has an occupational pension scheme that does not allow employees to make AVCs, they must make a standard PRSA available, either as part of the existing occupational pension scheme (this requires an amendment to the scheme rules) or as a separate AVC scheme.

 

What must an employer do to provide access to a standard PRSA?

An employer must:

• enter into a contract with a PRSA provider (there is no charge for doing this) the simple form for doing this is called a Letter of Appointment (LOA)
• notify ‘excluded employees’ that they have a right to contribute to a standard PRSA,
• allow the PRSA provider or intermediary reasonable access to ‘excluded employees’ at their workplace,
• allow reasonable paid leave of absence, subject to work requirements, so that ‘excluded employees’ can set up a standard PRSA,
• make deductions from payroll at the request of employees and remit these to the PRSA provider (employers cannot charge for deducting and remitting contributions),
• advise employees in writing (normally on their payslip) at least once a month of their total contribution including the employer’s contribution, if any.

 

If an employer has a small workforce of less than five employees, is access to a standard PRSA still necessary?

Yes, all employers, regardless of the size of their workforce, must provide access to a standard PRSA if those employees fall into the category of ‘excluded employees’.

 

If an employer has a number of part-time, fixed-term contract and seasonal employees, is access to a standard PRSA for these employees still necessary?

Yes, all employees, whatever their status, must be given access to a standard PRSA if they fall into the category of ‘excluded employees’.

 

Does an employer have to provide access to a PRSA even though there is an occupational pension scheme in place?

No, provided all employees – including full-time, part-time, seasonal, temporary, contract or casual employees – are eligible to join the scheme for pension benefits within six months of joining employment and the scheme permits the payment of AVCs.

Even if there is only one excluded employee, the employer must provide them with access to a standard PRSA.

 

What about additional voluntary contributions (AVCs)?

If an employer has an occupational pension scheme that does not allow employees to make AVCs, they must make a standard PRSA available, either as part of the existing occupational pension scheme (this requires an amendment to the scheme rules) or as a separate AVC scheme.

LABrokers  Zurich PRSA Application details  offer STANDARD PRSAs Pay less than €500 a month, You will receive 100% allocation
for the life of the PRSA and Zurich’s annual management charge will be 1%. Pay more than €500 a month, You will receive 100%
allocation for the life of the PRSA and Zurich’s annual management charge will be 0.75%. Lump sum Min of €5,000, max age at start of 63 next birthday
and a min term of 5 years, will receive 100% allocation for the life of the plab. We do not offer NON Standard PRSAs because there is no cap on their charging structure.

For a Zurich Standard PRSA or a PRSA AVC application pack please see

 

PRSA PRSA AVC

I am self employed or I have my own limited Company or I would like to setup a PRSA as my employer doesn’t provide one. I would like this to be taken at source from my salary. Please find a Zurich application pack here:   Standard PRSA application

I am an employee with a pension scheme but I want to make additional contributions so as to increase my retirement benefits. Please find a Zurich PRSA AVC application pack here  Zurich PRSA AVC Application

 

 

 

Zurich Standard PRSA and PRSA AVC through discount broker LABrokers.ie

 

 

CALCULATORS

Zurich pension calculator – Zurich Pension Calculator with LABrokers.ie for application pack.

Zurich Pension Tax relief Calculator: Zurich Pension Tax Relief Calculator