Under European pension legislation, all new and existing Executive Pension Plans (EPPs) must be set up under, or transferred to a Master Trust, or to a PRSA, to facilitate ongoing regular contributions, without incurring additional costs.
EPPs are employer-owned, but exist for the benefit of the employee (company owner/executive), meaning proper investment oversight is required by way of more robust trustee governance. New Trustee responsibilities have led to higher costs, but these can be avoided via a new Master Trust solution, or where suitable via a PRSA.
Trustee Responsibilities
In the past employers, themselves could act as the Trustee, or have an independent one appointed through their pension product provider. This worked without any added cost up, until new European pensions legislation known as IORP II, imposed additional Trustee responsibilities to include full Annual Reports and Audited Accounts.
Master Trust – Executive products introduced back in 2022, provide directors with a much-needed, comprehensive solution to the governance challenges, that have arisen on the back of the implementation of the IORP II, but without added cost. Whereas, since the introduction of the PRSA option for company owners without BIK implications, came into effect as of 1st January 2023, this broadens the choice when you’re ready yo transfer.
Master Trust Deadline
Any Executive Pension Plans set up after 22 April 2021, who wished to transfer to a Master Trust, whilst remaining with their provider, must have already done so, whereas, EPPs established before 22 April 2021, have up until April of 2026 to make a change.
Alternatively, company directors can switch their existing plan to a new provider, by completing a new Master Trust Executive Pension application or PRSA application and then transferring the funds from the old provider to the new one.
New Cost Savings Opportunity
For owners of existing Executive Pension Plans, this represents a real opportunity to reduce the costs associated with their plan.
Existing Executive Pension Plan holders can then choose to transfer to an alternative provider arrangement and immediately make substantial cost savings by not only reducing its all-important annual management charge (AMC), but also by removing policy fees.
Enhanced Investment Opportunity
Switching to a Master Trust or PRSA, which is essential to avoid adding costs, also presents an ideal opportunity to review your plan’s investment performance.
Consider the following:
1. Are you happy with the returns being achieved?
2. Are you in a default (lifestyle) fund, or do you have a bespoke portfolio?
3. Are you reliant only on a single fund manager strategy?
4. Does your plan provider offer sufficient fund manager choice?
5. Does your plan provider offer sufficient fund choice, within your risk profile?
6. Does your plan provider offer both passive and active funds?
7. Does your broker/financial advisor meet your service expectations?
Why switch to One Quote Financial Brokers?
Our leading Master Trust EPPs are available to existing Executive Pensions Plan switches:
* Unbeatable Charges
• Excellence in Governance
• World-Class Investment Options
• Bespoke Risk Management
• Award Winning Client Portal
* Our leading EPP Mater Trust solution
• Plan AMC from: 1.00% PA
• Contribution charge: None
• Early exit charges: None
• Fund switching charges: None
• Policy Fee: None
Frequently Asked Questions
1. How do I switch providers?
Complete a new Master Trust or PRSA application and transfer your existing fund.
2. Will 100% of my current fund value get transferred?
Yes, we will only transfer plans where no exit penalties exist.
3. How long will my existing EPP need to be in existence, before there are no exit penalties?
Typically, 4-5 years dependent on the set-up commission paid to your financial advisor/broker.
4. How many fund providers are offered under this low-cost EPP option?
We work with all leading pension providers s in forming a bespoke flexible portfolio.
5. Is a minimum monthly contribution level required?
Yes, the minimum contribution is €500.00 PM to qualify.
6. Do I have to switch to a Master Trust or PRSA arrangement?
Yes, unless you wish to take on governance responsibilities plus audit costs as the employer.
7. Do I have to switch to a Master Trust before April 2026?
Yes, all remaining Executive Pension Plans must switch to a Master Trust or PRSA by this deadline.
Free Consultation
Prior to contact, please note the following information will be sought:
1. Your name, age, and contact number.
2. Proof of existing retirement benefits.
3. Current value of existing retirement benefits.
Contact: Ken O’Gorman – Director – QFA, SIA, MCIBS – Pension Specialist – One Quote Financial Brokers on: 01 845 0049 or email: info@onequote.ie
Or enquire online and let us know how best to get back to you.
