PRSA vs Occupational Pension | Money Made Clear

General information only, based on official public sources. Not financial, tax, legal, pension, investment or welfare advice.

What they are

A Personal Retirement Savings Account, or PRSA, is an individual defined contribution pension arrangement. The Pensions Authority says PRSAs are contracts between an individual and an authorised PRSA provider.

An occupational pension is a pension scheme linked to employment. It is usually set up by an employer and governed by scheme rules.

Key terms

Term	Plain-English meaning
PRSA	An individual pension arrangement with an authorised PRSA provider.
Occupational pension	A workplace pension scheme connected with an employer or employment.
Defined contribution	A pension where the final value depends on contributions, investment performance, fees and charges.
Defined benefit	A scheme where benefits are calculated under scheme rules, often linked to salary and service.

Comparison table

Feature	PRSA	Occupational pension
Set up by	Individual arrangement with an authorised PRSA provider; employers can also contribute.	Usually set up by an employer for employees.
Linked to employer?	Not necessarily. A PRSA is generally linked to the individual.	Yes, it is normally linked to employment and scheme membership.
Portable?	PRSAs are generally portable, but transfer and access rules can still apply.	Options on leaving depend on scheme rules and pensions law.
Contributions	Can include personal contributions and employer contributions.	Can include employee and employer contributions, depending on the scheme.
Tax relief	May qualify for income tax relief, subject to Revenue rules and limits.	Employee contributions may qualify for income tax relief, subject to Revenue rules and limits.
Official source	The Pensions Authority and Revenue.	The Pensions Authority, Citizens Information and Revenue.

Tax relief in general terms

Pension contributions may qualify for income tax relief, subject to Revenue rules. The same broad Revenue limits can be relevant across pension arrangements, but the detailed position depends on the pension type and the person's circumstances.

Tax relief does not mean a pension contribution is free. It means Revenue may reduce income tax within the official rules.

Portability and changing jobs

A PRSA is normally an individual arrangement, so it is not tied to one employer in the same way as a workplace scheme. Occupational pension options on leaving employment can depend on the scheme rules, qualifying service and pension legislation.

Common misunderstandings

"One type is always better."

The arrangements have different structures. Suitability depends on rules, charges, employer contributions, tax treatment and individual circumstances.

"A PRSA is always separate from work."

A PRSA can be an individual arrangement, but employers can also contribute to PRSAs in some circumstances.

"All occupational pensions work the same way."

Scheme rules can vary. Defined benefit and defined contribution schemes work differently.

Where to check officially

Pension rules can depend on the pension type, the person's work record, scheme rules and individual circumstances. The official sources below are the places to check current rules.