Increase in PRSA uptake brings total holding accounts to 37,000

PERSONAL Retirement Savings Accounts (PRSAs) continued their slow progress towards the mainstream during the summer, according to figures released yesterday.

The Pensions Board, the body charged by the Government with improving the take-up of personal pension plans, said just over 4,000 new accounts were opened in the three months to September. This compared with more than 6,000 new accounts in the quarter to June and almost 8,000 in the preceding three months.

More than 37,000 people now hold PRSAs, which were first launched in the spring of last year and allow employees to contribute part of their salary into a special account that will be used to provide them with an income when they retire. The total value of PRSA funds stands at €106 million, €23 million more than at the end of June.

Pensions Board chief executive Anne Maher said the latest figures showed an increase in PRSA uptake but progress in improving national pension coverage would only be achieved if interested parties worked together.

The board will put a special emphasis between now and Christmas on making employers comply with their legal obligation to provide employees with access to a PRSA. Employers should have done this before September 2003.

The board has already written to 64,000 employers who had failed to register a designated pension scheme or pension provider.

“Key areas of concern are among small employers, particularly in the services, hospitality, retail and farming sectors,” said Ms Maher.