PRSA AVCs Paying more to improve retirement benefits
PRSA as an AVC
If you are a member of an occupational pension scheme in the private or public sector, you can make additional voluntary contributions to a PRSA.
If you make additional voluntary contributions to a PRSA, then your benefits will be subject to the rules of the scheme and the Revenue limits applying to occupational pension schemes.
If your employer has an occupational pension scheme that does not allow employees to make AVCs, your employer must make a Standard PRSA available, either as part of the existing occupational pension scheme or as a separate AVC scheme.
AVCs are contributions that you can make in addition to your normal contributions to an occupational pension scheme in the public or private sector to increase your retirement benefits.
AVCs are a defined contribution pension arrangement provided for your scheme usually by an insurance company or specialist pension provider. The fund available at retirement is determined by the combination of your contributions and any investment returns on these contributions less charges.
You can choose the rate at which to contribute to an AVC, subject to a maximum rate determined by Revenue and these AVCs attract tax relief, subject to Revenue limits.
AVCs are only permitted if the rules of the particular scheme permit AVCs to be made. If the rules do not permit AVCs to be made then a Standard PRSA must be offered by your employer for the purpose of making AVCs.
If you make AVCs, then your benefits will be subject to the rules of your scheme and the Revenue limits applying to occupational pension schemes. https://www.pensionsauthority.ie/en/lifecycle/paying_more_to_improve_benefits/additional_voluntary_contributions_avcs_/
If your employer does not operate an occupational pension scheme or if certain restrictions apply to the occupational pension scheme, your employer is required by law to provide access to at least one Standard PRSA. This rule applies to all employers, irrespective of the number of employees and the status of those employees (that is, whether they are full-time, fixed-term, part-time or contract).
Contact the HR manager or Payroll Section at your employment to find out more about the Standard PRSA(s) they have provided.
More information on Zurich Low Cost PRSA AVC here: https://www.labrokers.ie/prsas-ireland-personal-retirement-savings-account-pension-plan/zurich-low-cost-prsa-avcs/