PRSA's
PRSAs are available to all to all types of people, regardless of their employment status. This includes employees, the self-employed, part-time workers, contract workers and the unemployed. There are two types, a Standard PRSA and a non Standard PRSA, however there is a greater choice of funds and individual advice.
Standard PRSA's
- Charges must not exceed 5% of each contribution received.
- Annual management charges are capped 1% of the value of the fund.
Non-Standard PRSA's
- Charges are not capped and in most cases are higher than on Standard PRSA's, however there is a greater choice of funds and individual advice.
The charges and fund choice available which apply to different PRSA products, particularly Non Standard PRSAs, will differ between the different product providers and therefore it is important that anyone looking to take out a PRSA whether standard or non standard seeks advice on the range of products available
Employer Obligations:
The Pensions (Amendment) Act 2002 introduced an element of compulsory pensions for employers. Employers who do not operate a pensions scheme are obliged to give at least one standard PRSA to their staff, however, they are not obliged to contribute to the PRSA.
