Public Service Pension - AVCs

Cluedo Monopoly · 07-03-2022 4:45pm #1

Hi,

My wife recently joined the public service and their single pension scheme after many years in private sector.

She wants to go about doing AVCs but was told she needs to set up her own private pension to do so. The public sector seems to have a recommended AVC provider but there seems to be expensive management costs up front.

Any advice on doing this ?

tmh106 · 07-03-2022 5:32pm

Before doing anything about setting up a private pension, I'd double check the advice she was given. I'm not a public servant, but it would seem incredible to me if public service employees do not have some kind of AVC scheme that they can contribute to.

Cluedo Monopoly · 07-03-2022 6:39pm

https://www.boards.ie/discussion/comment/118746626#Comment_118746626

Yeah she said there is a company that provide a private pension for public sector employees where she pays AVCs direct via her payroll to their fund.

That Irish company takes a sizeable % of the AVCs in the first year as an up front management charge. It depends on the amount of AVC.

07-03-2022 6:43pm

There are a number of different companies that do this. She has probably been sent to a prominent company around Christchurch area?

There are others if she looks around, or maybe some of her co-workers nights have avc's with different companies

holliehobbie · 07-03-2022 6:57pm

To be honest I think they all take a good chunk of the first years payments!

tmh106 · 07-03-2022 6:58pm

Oh, sorry, I missed the part about the exiting public service provider being expensive. If she doesn't want to pay those charges - and if I was in her position, I would be the same - then I suspect that setting up a PRSA is the way to go. But I'm not an expert in this area, so hopefully others here will be able to reply with advice. I seem to recall that there were some posts in the past about PRSA - maybe do a search in here for "PRSA" to see if you find anything useful. You could also try asking on the askaboutmoney site