Bank of Ireland Life has warned employers that Personal Retirement Savings Accounts (PRSAs) could affect the competitiveness of their businesses if not managed effectively.
Every employer in the country will be obligated by law to provide all their staff with access to some form of pension or PRSA, most likely by the 15th of September 2003.
Pat Surlis, national pensions sales manager with Bank of Ireland Life, said that many employers are not adequately preparing for compliance. ‘Failure to manage the PRSA process correctly and to make informed choices could see both small and larger employers facing serious difficulties. There are significant logistical challenges to be faced ranging from operational issues including payroll management issues to contractual agreements which need to be negotiated with potential PRSA providers. Employees must be notified of their rights, including the provision of paid leave to enable them to set up their PRSA and they have the right to choose standard and non-standard PRSAs. This does not happen overnight and requires an immediate focus by every employer large and small.’
At the end of February the Irish pensions regulator approved the first 41 PRSA products from six companies: Ark Life Assurance, Canada Life Assurance, Eagle Star Life Assurance, Hibernian Life & Pensions, Irish Life Assurance and New Ireland Assurance, Bank of Ireland Life. |
