Personal Retirement Savings Accounts (PRSAs)
A tax efficient, flexible way to plan for your employees’ retirement.
A cost effective, straight forward arrangement to reward your employees for their service can be achieved with a Group Personal Retirement Savings Account (PRSA) scheme.
PRSAs were the subject of change in the Finance Act 2022, making pension funding a lot more attractive for company directors and key employees. The changes resulted in the removal of the BIK charge on all employer contributions to a PRSA. This means that your contributions to a PRSA for an employee or company director are no longer limited by salary, service, retained benefits or marital status.
PRSA’s and changing pension laws in Ireland.
Join Fionán as he explores the transformed pension landscape in Ireland, emphasising the effectiveness of master trusts for group pension schemes.
Benefits of a PRSA for you.
No Max Funding Calculations
The only limit relates to the Lifetime Pension Fund limit. The standard fund threshold is currently €2,000,000.
Unlimited Contributions
Salary, service, retained benefits and marital status are no longer a restriction on how much can be contributed to a PRSA. You can make unlimited contributions to an employee’s PRSA.
No Benefit In Kind (BIK) Charge
BIK charge on your contributions have been removed.
Contributions Allowed As An Expense
PRSA contributions will also be allowed as an expense for your company in the year in which they are paid (with no upper limit).
PRSA Value Transferred to Estate
Currently, if you die before retirement, the value of the PRSA can be used to provide a pension for your spouse or can be paid as a lump sum to your estate.
No Max Funding Calculations
The only limit relates to the Lifetime Pension Fund limit. The standard fund threshold is currently €2,000,000.
Unlimited Contributions
Salary, service, retained benefits and marital status are no longer a restriction on how much can be contributed to a PRSA. You can make unlimited contributions to an employee’s PRSA.
No Benefit In Kind (BIK) Charge
BIK charge on your contributions have been removed.
Contributions Allowed As An Expense
PRSA contributions will also be allowed as an expense for your company in the year in which they are paid (with no upper limit).
PRSA Value Transferred to Estate
Currently, if you die before retirement, the value of the PRSA can be used to provide a pension for your spouse or can be paid as a lump sum to your estate.
Benefits of a PRSA for your people.
Investment Options
Your employees can choose from a wide range of pension investment funds.
Tax Relief
Employees can currently avail of a generous income tax relief on their contributions, no tax is payable on any growth during the term of the PRSA and on retirement some of the fund may be taken as a tax free retirement lump sum.
Retirement Options
On retirement your employees can choose how they wish to benefit from their retirement fund.
Online Access
Your employees can also avail of an online service to stay up to date with information on their PRSA.
Investment Options
Your employees can choose from a wide range of pension investment funds.
Tax Relief
Employees can currently avail of a generous income tax relief on their contributions, no tax is payable on any growth during the term of the PRSA and on retirement some of the fund may be taken as a tax free retirement lump sum.
Retirement Options
On retirement your employees can choose how they wish to benefit from their retirement fund.
Online Access
Your employees can also avail of an online service to stay up to date with information on their PRSA.
Explore more Employee Retirement Solutions.
Master Trust
Discover the ultimate solution for managing your employees' retirement savings effortlessly through a Master Trust Pension solution. Offering this pension solution demonstrates your commitment to employee financial wellness and to attract top talent. Additionally, Master Trusts simplify administration, offer tax benefits, and empower your workforce to take control of their retirement planning.
Auto-enrolment
Due to launch at the start of 2025, auto-enrolment will ensure employees, not currently saving for retirement, are automatically enrolled in the Government Auto-Enrolment pension scheme thus encouraging long-term savings and retirement planning. Employees already participating in your Pension solution will be exempt from being included in it, once certain criteria are met.
Start your PRSA journey for your employees.
If you would like to learn more about how Trust Matters can work with you to plan your employees' PRSAs, contact us today.
