In a vested PRSA example where the total vested amount is €100,000, what is the ring-fenced portion?

In a vested PRSA example where the total vested amount is €100,000, what is the ring-fenced portion?

• A. Nil
• B. €36,500
• C. €63,500
• D. €100,000

Answer: (C)

When a vested PRSA is split, the ring-fenced portion is the part of the vested amount that comes from sources other than the member’s own contributions—essentially the funds that are retained to provide retirement benefits. In this example, the total vested amount is €100,000, and the member’s own contributions amount to €36,500. Subtracting the member’s contributions from the total vested gives 100,000 − 36,500 = 63,500. That €63,500 is the ring-fenced portion. The remaining €36,500 represents the portion funded by the member’s own contributions, which is not counted as the ring-fenced amount. Hence, the correct amount is €63,500.

When a vested PRSA is split, the ring-fenced portion is the part of the vested amount that comes from sources other than the member’s own contributions—essentially the funds that are retained to provide retirement benefits. In this example, the total vested amount is €100,000, and the member’s own contributions amount to €36,500. Subtracting the member’s contributions from the total vested gives 100,000 − 36,500 = 63,500. That €63,500 is the ring-fenced portion.

The remaining €36,500 represents the portion funded by the member’s own contributions, which is not counted as the ring-fenced amount. Hence, the correct amount is €63,500.