EBS enters PRSA pensions market

EBS Building Society has entered the pensions market for the first time with the introduction of its personal retirement savings accounts (PRSAs).

EBS said yesterday it hoped to capture a 10 per cent market share for the new flexible pensions. PRSAs are Government-endorsed pensions designed to increase the proportion of the Irish workforce with their own private pension from 50 per cent to 70 per cent.

Mr David Earle, head of EBS savings and investments, said the building society was serious in its commitment to the industry. "Pensions have always been our biggest gap," he said.

PRSAs will be a "marathon" compared to the "sprint" for special savings incentive accounts (SSIAs), but EBS would be at the front of the field, Mr Earle said.

EBS is the eighth company to start selling PRSAs and the first that is new to the pensions market.

Ms Anne Maher, chief executive of the Pensions Board, has welcomed the addition of new players to the market on the basis that they may be able to reach a different customer base.

EBS has decided to sell just standard PRSAs, where charges are capped. Mr Earle said standard PRSAs were "within the spirit of the legislation" laid down by Government. The building society is finalising its group PRSA aimed at employers.

EBS, which has almost €400 million under management in its Summit Funds, will build on its experience in the savings market, according to Ms Sarah Loftus, senior manager for savings and investments.