IPPN

Published: 01 September 2003

Personal Retirement Savings Account - PRSAs

The financial and legal implications of employing part time members of staff such as resource teachers, SNAs, secretaries, caretakers etc have in the past created a huge headache and massive workload for principal teachers. Thankfully many principals have successfully offloaded this particular task by insisting that the BoM retains the services of an appropriate accountant. If your BoM has not already done this, the recent obligation on all employers to facilitate their staff to have access to PRSAs, will almost certainly require the BoM to access external expertise. This is a responsibility of the Board of Management not the principal teacher.

You may be aware from the last issue of Solas magazine and indeed from national advertising that all employers now have a responsibility to facilitate employees in accessing suitable pension schemes or the new government scheme called PRSA - Personal Retirement Saving Account. This does not present a problem in the case of most employees of the BoM, as they are paid directly by the DES and are already within the public sector pension scheme. However, part time employees such as SNAs, resource teachers, secretaries and caretakers etc will fall within this category. The BoM should address this issue by nominating a member of the Board (it does not need to be the principal teacher) to contact one of the approved PRSA providers and invite a representative of such a provider to come and meet the relevant staff within the school at a time convenient to all. Once the PRSA provider makes contact with the staff in the school who require information about PRSAs, the provider will register the details of the BoM and record that they have fulfilled their obligation to provide information about PRSAs to their staff.

The onus then rests with the employee to decide whether or not they will take out a PRSA Plan. If he or she decides to do so the employer must then facilitate the necessary deductions to be made at source in the same way as PRSI and PAYE are deducted. Many schools have already handed over all such payroll functions for part time employees to an appropriate professional i.e. an accountant. The accountant registers the employee with the tax office re tax free allowances, PAYE, PRSI etc. The accountant also liaises with the DES re ancillary staff grants and reimbursement of salary for SNAs etc. Likewise the accountant liaises with the employee re payment by cheque or standing order.

Should a part time employee seek to take out a PRSA the above approach should ensure no additional workload for the principal and the ease of mind in knowing that it has all been dealt with properly by the appropriate professional.

New Ireland Assurance Company Limited is one of the providers of PRSAs approved by the Central Bank.

New Ireland has taken an advert in this issue of IPPN's newsletter and will assist your Board of Management in facilitating staff to learn about these PRSAs and fulfil the Board's obligation.

Is mise le meas,

Seán Cottrell
Director