PRSA contribution changes - practical steps to support smoother servicing
The PRSA is a simple and flexible product that continues to play a central role in retirement planning. Its ability to accommodate both employer and employee contributions means it can easily adapt as circumstances change.
We recognise that amendments to the PRSA contributions following changes in circumstances can create additional work. Below we outline four practical ways to reduce future changes and avoid unnecessary delays and additional work.
1. Getting it right first time
Accurate information at setup is key. Many servicing queries relating to employer PRSA contributions can be avoided when details are clearly agreed and aligned at application stage Incorrect start dates or contribution details can result in short‑term fixes once the policy goes live, such as one‑month premium adjustments. While these can resolve an issue, they often introduce additional processing and delay.
Tip 1: Taking a little extra time at setup stage to ensure information is accurate means contributions are correct and policies run smoothly from the start.
2. Aligning payroll and contribution start dates
A common challenge arises where a contribution start date is provided, but the employers payroll is not yet ready to start deducting contributions. This can result in avoidable requests for temporary contribution holidays.
Tip 2: Confirm payroll readiness with the employer in advance and reflect this in the contribution start date to help minimise additional servicing requests.
3. Clarity on employer and employee contribution splits
Agreeing and documenting employer and employee contribution splits upfront is important. While changes are straightforward before premiums are collected, retrospective adjustments are more complex and time‑consuming, often involving refunds and reprocessing.
Tip 3: Get clear agreement on contribution split before submission to help avoid disruption for employers, employees and advisers.
4. Allowing time for contribution changes
Requests for contribution changes or contribution holidays need sufficient notice. As payment processing begins several days ahead of the collection date, changes may not take effect immediately.
Tip 4: When requesting a contribution change or contribution holiday, refer to the direct debit collection date, rather than the payroll month alone. This can help ensure requests are actioned as intended.
Regulatory requirements when contributions stop
Where employer or employee contributions stop without a valid reason, we’re legally required to seek clarification and, where necessary, notify the Pensions Authority. It’s important that employers are aware they must advise us of the reason contributions are ceasing.
Valid reasons include:
- an employee leaving employment
- unpaid leave,
- an employer ceasing to trade
Submitting contribution changes
For queries relating to contribution changes, advisers can contact our servicing team at customerservice@standardlife.ie.
Where a change to an existing regular contribution is required, advisers should submit requests using our online Change Regular Contribution form.
Using online forms helps reduce processing delays by:
- removing the need for emails or written requests
- providing built‑in validation to avoid missing or incomplete information, and
- giving instant confirmation once instructions are submitted
To add a new employer‑facilitated contribution to an existing PRSA, including employee and/or employer regular or single contributions, advisers should complete the Employer Contribution to Employee Synergy PRSA form.