[2] The act also excluded employer contributions to an employee’s PRSA from qualifying as a benefit-in-kind for tax purposes.
If the consumer does not need advice on the product or in selecting investment funds, they can buy a PRSA on an 'Execution Only' basis.
The reward for the consumer in electing for this method of purchase is that they can buy the product without the 5% contribution charge.
They can also elect to choose a 'Default Investment Strategy' which is designed to fulfil the reasonable expectations of a typical investor.
If the contribution is deducted from salary, then any Tax and PRSI (Pay Related Social Insurance) Reliefs are applied at source so that the payments are made on a nett basis.
If payments are made from the contributors bank account, then any Tax or PRSI Reliefs that may be due would have to be applied for 'manually' through Revenue.
For example, if an employee's highest rate of income tax is 40% and they also pay PRSI of 6%, the nett cost on a contribution of €100 would be €54.