Launch of the Revenue Pensions Manual (2007 Edition).
Remarks by Frank Daly, Chairman of the Revenue Commissioners
Welcome:
On behalf of the Revenue Board, I extend a warm welcome to you all this afternoon on the occasion of the launch of the 2007 Edition of the Revenue Pensions Manual. I am delighted that so many of the key players in the pensions industry are with us today, including those from the various representative associations, life offices and consultancy firms. I also wish to extend a warm welcome to those representing other State Agencies and Departments and, of course, my colleagues in Revenue.
I would like to thank Dave Coleman and his team in the Revenue Press Office for organising the event and most of all Clive Slattery and his team in the Pensions Unit in Large Cases Division for producing the Manual.
2007 Edition:
P G Wodehouse once made fun of a writer colleague by asking why he had given such a lengthy explanation of his book and its purposes, when a simple apology would have sufficed. Nevertheless, some justification for this afternoon’s gathering is appropriate.
I know many of you were present in April 2005 when the previous Edition of this Manual was launched – and that, given the more normal gap of seven years between editions, you might not have expected to be back here again 2012. The fact that on this occasion the gap between editions is a mere two years is quite simply a reflection of the pace of change in pensions – and of course of Revenue’s commitment to keep its guidance manuals and information as relevant and up to date as possible.
Pensions of course will undoubtedly be an area of continuing change. I’m no actuary and therefore unable to predict the future with confidence – however I would lay out some of my own (modest) pension on a bet that publication of the forthcoming Green Paper is unlikely to recommend continuation of the status quo.
Supporting Compliance
Whatever the future holds for developments in pensions we in Revenue are conscious of our responsibility to provide timely and coherent support to professionals in the pensions industry. As the tax reliefs associated with Revenue approved pension schemes are considerable, a high level of compliance with the legislation is essential. Clear, up to the minute guidance for the industry and for other interested parties is a prerequisite for fostering compliance and this Manual is a significant part of Revenue’s contribution towards achieving this objective.
Tax Reliefs Review:
As everybody here knows, two years ago the Minister for Finance instigated a number of reviews of various tax reliefs, including one dealing with the reliefs available for contributions to Pension Funds. I am pleased to say that the pensions review was completed “in house” and led by Revenue and a Report was presented to the Minister in the latter half of 2005. In his Budget speech that year, the Minister announced a number of changes in the legislative framework and these were subsequently enacted in the 2006 Finance Act. This updated Manual provides detailed information on the practical operation of these important recent changes.
The changes in Section 14, Finance Act, 2006 focus primarily on the introduction of a life time limit on individual tax relieved pension funds together with a limit on the quantum of tax free lump sum benefit. A new Chapter 25 focused on these changes has been added to the Manual and inter alia explains the mysteries of “benefit crystallisation events” and “relevant valuation factors”. Those with an interest in “imputed distributions” from an Approved Retirement Fund on the other hand will probably go directly (and no doubt with some enthusiasm) to Chapter 23.
european Developments:
Like so much else today the increasing influence of euroe has led directly to a number of legislative and practice changes in the pensions area and this is reflected in the new Manual. You will find up to date information for example on:
- Transfers of pension rights between various jurisdictions,
- Reliefs available to seconded employees,
- Tax relief for migrant workers (for citizens of European Union Member States moving to Ireland) who wish to continue making contributions to a pension scheme in their own country and
- Tax reliefs available to cross border pension schemes.
In September, Ireland will host a Conference for representatives of European Revenue Administrations dealing with current pension related tax issues. You can be assured that through this Conference and other contacts we will be keeping closely in touch with pensions developments in euroe.
2007 Pensions Manual:
I now launch the 2007 edition of the Manual and wish you all many hours of happy reading. I am fully confident of seeing the Manual mentioned in the Irish Times list of 'Books I will be reading on holidays this summer'!
Enjoy the remainder of the evening.