DC schemes, personal pensions and PRSAs
Defined contribution (DC) pension schemes are set up under trust and the trustees are responsible for safeguarding the assets. Personal retirement savings accounts (PRSAs) and personal pensions are provided by regulated financial institutions.
In DC schemes, PRSAs and personal pensions, there is a direct relationship between the assets of the pension fund and the benefits payable to members.
If, for example, you have a pension fund worth €50,000, the DC trustees, life assurance company or PRSA provider will be holding €50,000 in assets to support your fund.