An employer operates a pension scheme for its employees. Employees join the scheme for retirement benefits after two years of service. The employer must provide a facility for employees who have not joined the pension scheme to contribute by payroll deduction to at least one:

• A. Non-Standard PRSA
• B. Retirement Annuity Contract
• C. Standard PRSA
• D. Life assurance savings plan

Answer: (C)

When an employer provides a pension scheme, there is a requirement to give employees who haven’t joined that scheme the option to save for retirement through payroll deduction into a Standard PRSA. The Standard PRSA is the regulated, default choice because it offers a consistent, cost-conscious, portable retirement savings vehicle that employers can facilitate through payroll. This setup ensures all employees have access to retirement savings, even if they don’t participate in the employer’s scheme.

Non-Standard PRSAs aren’t the mandated option for this facility, and Retirement Annuity Contracts or life assurance savings plans are separate product types that don’t fulfill the required default arrangement.