Less than 20,000 workers take up PRSAs

LESS than 20,000 workers have taken -up Personal Retirement Savings Accounts (PRSA) while employers are facilitating contributions to pensions plans of just 7,499 workers under the scheme.

The Pensions Board said it is pleased to report a steady increase in the uptake of PRSAs following the review of all PRSA provider data up to the end of December 2003.

The board hopes that close to 340,000 workers will take out PRSAs over the next 10 years to increase the number of workers in occupation schemes from 50% to 70%.

However, while it has received 43 “whistleblower” alerts about employers who have failed to register for the compulsory scheme but they have yet to take any action against defaulters.

Employers who fail to register face criminal prosecutions, fines of up to €12,500 and/or a maximum of two years in jail if the Pensions Board moves against them.

In the last seven months a total of 19,022 PRSAs have been taken out which is made up of 14,686 standard PRSAs and 4,336 non-standard PRSAs, with a total asset value of €41 million.

To date 58,770 employers have signed up with a PRSA provider to provide pension access for their employees but only 2,502 employers have workers who have taken out PRSAs. The Pensions Board do not know how many employers are making a financial contribution to their employee’s pensions under the PRSA regime.

Pensions Board chief executive Anne Maher said after little over half a year in existence PRSA take up is showing steady progress.

The monitoring of employers is a high priority for the board this year and it is carrying out random and target monitoring of employers who have not signed up for the scheme.