Pensions Board reports jump in PRSA uptake

The Pensions Board said today that there was an increase in the uptake of PRSAs with 19,022 PRSA pensions taken out by the end of December 2003, representing a combined value of €41m.

More than 30% of the PRSA pensions sold were non-standard products, which charge a higher entry fee than that permitted under the PRSA rules.

There are 10 providers of PRSAs with a total of 56 approved products, 33 of which are non-standard.

According to Anne Maher, CEO, of the Pensions Board: "After little over half a year in existence PRSA take up is showing steady progress", and she added "this is the beginning of a long progress to raise pensions coverage in Ireland".

A PRSA is a personal pension plan where the contributions paid are tax deductible and the investment return is tax exempted.

Since September 2003 all employers are legally required to enter into a contract with a PRSA provider so that access to at least one Standard PRSA is available.

There are currently 58,770 employers who have signed up with a PRSA provider to provide pension access for their employees.

The Board are currently carrying out random and target monitoring of employers who do not have occupational pension schemes registered with the Board and who have not designated a PRSA provider.

The Board is also finalising arrangements to work with other agencies in this compliance process.