Revenue eBrief No. 60/17

09 June 2017

Pensions Manual Amended

An updated version of the Pensions Manual is now available on the Revenue website.

The Pensions Manual has been amended as follows:

  • Chapters 21, 24, 25 and 28 to reflect section 14 Finance Act 2016 changes to the Taxes Consolidation Act 1997 which introduced provisions relating to the deemed vesting of Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) where an RAC or PRSA does not vest (i.e. mature or come into payment) by the date of the owner’s 75th birthday. The main amendments are as follows:

Chapter 21, new paragraph 8, describing the tax consequences when an RAC is deemed to vest at age 75.

Chapter 24, new paragraph 13, describing the tax consequences when a PRSA is deemed to vest at age 75.

Chapter 25, amendments to paragraphs 4 and 5 in relation to the amount of pension savings crystallised by the deemed vested of RACs and PRSAs at age 75 and the completion of BCE certificates.

Chapter 28,amendments to paragraph 2 in relation to the amended definition of 'vested PRSA'.

  • Chapters 3 and 17 by inserting new paragraphs 3.6.1 and 17.8.1 in relation to employees who are seconded or transferred by their employer to work overseas and are not accessible to tax in Ireland in respect of their overseas salary.
  • Chapter 23 as follows:

In paragraph 3, Deferral of Annuity Purchase, to include a reference to the new Appendix IV (described below).

In paragraph 4, Specified Income Requirement, to include additional information on the income an individual can take into account in determining the level of his or her specified income.

In paragraph 10, Death, to provide additional information relating to the various scenarios provided for in section 784A(4) TCA 1997.

  • Appendix 1 (amendment to the definition of 'service').
  • Inserting a new Appendix IV, which incorporates Revenue eBrief No. 65/08 'Deferral of Annuity Purchase'.
  • Inserting a new Appendix V, which incorporates the contents of Tax Briefing articles that dealt with retirement annuity relief on contributions to the GMS Superannuation Plan.