Moving from Company Pension to Davy self-directed PRSA - regulatory requirements?

MuffinsDa

I have a small pension with my previous employer's pension scheme. I have left that employer last year and am working as a self-employed (own company) since.

I wanted to move my pension funds from the old employers scheme to a self directed PRSA as I would like to have more control over it. I have dealt shares before and haven't done anything stupid (yet) and at the stage of life I'm on I can take a bit of risk so I want to invest it mostly in equities.

I spoke to a guy in Davy about opening one of their self directed PRSA share dealing accounts but to my surprise I was told that I will have to pay a fee of €650 for an actuary to do up a comparison of what would be the pension benefit be if I stay with my existing plan versus going to self-directed davy's one. But The first part is already done and the second part is completely unpredictable for a share dealing account. However he insisted that this has to be done as it's a regulatory requirement by the pensions boards.

My question is, is this really the case? I have never heard of it from any other pensions provider. Does it really have to be done and should it really cost €650?! Sounds like an absolute rip-off to me. Any advice greatly appreciated.

MuffinsDa

Ok, I answer my own question, it does seem that I need a certificate of comparison alright:

http://www.pensionsboard.ie/en/Publications/Information_Booklets/PRSA_A_consumer_guide.pdf

Certificate of comparison
You need a certificate of comparison if you are a member of an
occupational pension scheme and are transferring your benefits
into a PRSA. This certificate compares the possible benefits of your
occupational pension scheme with the possible benefits from the
PRSA. You should get this certificate before transferring from an
occupational pension scheme to a PRSA. You should also receive a
written statement outlining the reasons why such a transfer is in your
best interests. There may be a charge for providing this certificate.
A certificate is not required where the transfer from the occupational
pension scheme is in respect of a deferred member and the value is
less than €10,000, if you were in the scheme for less than two years
and do not have any preserved benefits in it or if your occupational
pension scheme is in wind up

Question is, how much should this cost, and does the new provider (PRSA provider) normally absorb it or does it have to be done by the client?

Pablo Sanchez

If your company pension was a defined benefit pension i would be very careful before i would think of moving it.

MuffinsDa

thanks. No, it was defined contributions.

The J Stands for Jay

If you were to transfer it to a buy out bond there would be no requirement for the certificate of benefit comparison. I know that Standard Life's buy out bond can allow self directed share dealing (i work for SL).