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Group PRSA Pension

A PRSA (Personal Retirement Savings Account) is a type of pension plan that offers flexibility, convenience and value for money.

Employees can save monthly and once-off contributions which go into their Irish Life Corporate Business Group PRSA plan. These contributions are then invested in whatever investment fund the employee chooses. Tax relief is available on contributions, subject to revenue limits and the funds built up will become available when the PRSA holder retires or from age 60, under certain circumstances.

The aim of a PRSA is to provide an employee with a pension fund at retirement. From this fund, employees have a number of choices in terms of what form of retirement benefits they take. These benefits can be taken in the same way as a personal pension plan.

 

Employer Obligations - Standard PRSA

As an employer, you will have to offer the facility to your employees to take out at least one standard PRSA if:

  • you do not currently have a pension scheme in place; or
  • you have employees that are not included in the pension scheme; or
  • you have imposed a waiting period for membership of the pension scheme of more than 6 months; or
  • you do not allow employees take out an AVC plan (within the scheme rules).

If you currently have a pension scheme where all your employees are entitled to membership, you may not be affected by the legislation.

 

To establish a Group PRSA pension plan, you are obliged to:

  • nominate a company (or companies) to provide access to at least one standard PRSA for your staff. This company must be a PRSA provider approved by the Pensions Board. Irish Life Corporate Business is an approved PRSA provider.
  • communicate this choice to your staff and inform them about the PRSA facility you have decided on.
  • allow your employees access to this provider, either by giving the provider (or an intermediary) permission to talk to your staff or by allowing your staff time to talk to that provider (or an intermediary).
  • write to your employees offering the option to deduct regular PRSA payments directly from their pay. If your employees choose this method of payment, income tax relief will be immediate.
  • ensure that the PRSA contract is approved under Part 10 of the Pensions Act 1990.

You do not need to contribute, but it is extremely tax efficient if you decide to do so.


While the PRSA is in force you are obliged to:

  • send any payments deducted from the employees' salaries to the PRSA provider within 21 days from the end of the month in which they were deducted. The employee may opt to pay personal contributions from his own bank account in which case this requirement does not apply.
  • send any payments you make yourself to the provider within the same timeframe outlined above.
  • notify the provider and employee in writing, at least once a month, of the payments deducted from employees' salaries and any payments made by you. This relates to those contributions paid between the last such statement and this one.


As an employer:

  • you do not have to contribute to a PRSA.
  • you do not have any responsibility regarding the investment choice and performance of the PRSA fund(s).

If you do have a pension scheme already:

  • If, on leaving service, one of your employees wishes to transfer from the pension scheme to a PRSA, you must give them certain information about the trust scheme and the new PRSA facility. Your financial advisor will help you with this.

Tax information is current and could change in the future.

Downloads

Click here to view all PRSA documents

WARNING: If you invest in this product you will not have any access to your money until your retirement date.

WARNING: The value of your investment may go down as well as up.

WARNING: The income you get from this investment may go down as well as up.

WARNING: The value of the fund may be affected by changes in currency exchange rates.

WARNING: If you invest in this product you may lose some or all of the money you invest.

Irish Life Assurance plc is regulated by the Central Bank of Ireland.

In the interest of customer service we may record and monitor calls. Irish Life Assurance plc, Registered in Ireland number 152576, Vat number 9F55923G.

Irish Life Assurance is part of the Irish Life and Permanent Group. Registered office is situated at Irish Life Centre, Lower Abbey Street, Dublin 1.

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