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» Financial Services » PRSA |
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PRSA |
Employers Obligations
Employers have to offer their employees the facility to put in place‚ at least one Standard PRSA in situations where:
- There is no pension scheme currently in place
- Some employees are excluded from the existing pension scheme
- The waiting period for membership of the existing scheme is more than 6 months
- The current pension scheme rules do not allow employees to make AVCs
To put the PRSA scheme in place‚ the employer needs to:
- Nominate a Standard PRSA provider approved by the Pensions Board. The approved PRSA provider
- Inform your staff of who the nominated company is and that the facility exists to put in place a PRSA
- Let the employees know that PRSA payments can be made directly from their pay
- Allow the staff access to the provider to set up their PRSA
When the PRSA scheme is up and running the employer needs to:
- Remit payments deducted from employees to the PRSA provider within 21 days from the end of the month in which they were deducted
- Send and employer pension payments within the same period
- Notify the employee and provider of the payments deducted from salary and any employer pension payments‚ at least once a month
NB : The employer is not obliged to contribute to the PRSA and does not have any responsibility regarding the fund selection or performance of the PRSA.
The following documentation is available‚ by e-mail‚ on request:
- An Employer Guide to PRSAs
- The Employers PRSA Role
- Eagle Star Letter of Appointment and
- An Employer Guide to Salary Deduction
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Employee Benefits - Why you should consider this PRSA ‘Execution Only’ Service for Employees
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Value for money - The charge is limited to a 1% Annual Charge on their fund value. As no contribution charge is applied‚ 95% of the employer and employee payments are invested in the PRSA.
Responsibility - The employee is responsible for choosing their own level of contribution and the funds that are appropriate to their risk profile.
Choice - Even if you have an existing scheme in place‚ you might want to offer this low-cost option to those employees that have a good understanding of their financial needs. |
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For more information on any of the above or for a
specific quote please email
lorraine@doneganfinancial.com or contact Lorraine at 045 901 201
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