Good news coming in 2023 Employer Contributions on behalf of an employee to a PRSA will no longer be considered BIK to the employee. This affords the advantages of Occupational Pension schemes which are now subject to cumbersome regulation.
Changes in PRSA in relation to BIK
Implementing a recommendation of the report of the Interdepartmental Pensions Reform and Taxation Group, the Finance Bill will provide that employer contributions on behalf of an employee to Personal Retirement Savings Account (PRSA) are no longer considered benefit-in-kind (BIK) for the employee. This brings the tax relief available to employees for employer contributions to a PRSA in line with that available for occupational pension schemes.