Revenue eBrief No. 133/22

24 June 2022

Revenue Pensions Manual - abolition of Approved Minimum Retirement Fund requirement

A number of updates have been made to Chapters 22, 23 and 28 of the Revenue Pensions Manual to reflect the abolition of the Approved Minimum Retirement Fund requirement in Finance Act 2021. The main changes are highlighted below.

Chapter 22 - Pension Adjustment Orders

  • Paragraph 5 is updated to remove references to Approved Minimum Retirement Funds (AMRFs) which are abolished with effect from 31 December 2021. A paragraph has been added to provide details on the abolition of this product.

Chapter 23 – Approved Retirement Funds

  • This manual is extensively updated throughout to reflect the abolition of the AMRF in Finance Act 2021 and the removal of specified minimum income requirement for all individuals wishing to avail of the retirement options.
  • Paragraph 2 is updated to:
    • remove the specified minimum income requirement reference and add a paragraph to state this no longer applies, and
    • include details on the option to transfer benefits to an ARF for a surviving spouse or dependants where an employee of an occupational pension scheme dies in service. 
  • The former paragraph 4, which covered Deferral of Annuity Purchase, has been removed.
  • Paragraph 4, previously 5 (Specified income requirement) removes the previous minimum specified income requirements when choosing to invest in an ARF.
  • Paragraph 5, previously 6 (Approved Minimum Retirement Funds) is updated to detail the removal of AMRF products and the process by which they were transferred to ARFs.
  • Paragraph 6, previously 7 (Withdrawals from an AMRF/Conversion of an AMRF to an ARF) is updated to:  
    • remove conditions outlining the transfer of funds from an AMRF to an ARF,
    • remove the previous guidance on transitional arrangements for AMRFs, and
    • details on Pension Adjustment Orders has been updated to reflect the abolition of AMRFs.
    • Paragraph 7, previously 8 (Full withdrawal of balance in retirement fund) has been updated to remove reference to the previous minimum income requirement.
    • Paragraph 8, previously 9 (Approved Retirement Fund) is updated to include the option to purchase an annuity prior to transferring the balance of the fund to an ARF.
    • Paragraph 9, previously 10 (Qualifying Fund Manager) has been updated to remove the specified income reporting on declarations.
    • Paragraph 14, previously 13 (Imputed Distributions) is updated to remove historic information regarding the operation of imputed distributions.

Chapter 28 – Imputed Distributions from Approved Retirement Funds and Vested PRSAs

  • Paragraph 1 is updated to remove legacy rules on treatment of imputed distributions.
  • Paragraph 2 is updated to reflect the AMRF abolition in Finance Act 2021.
  • Paragraph 4 is updated to:
    • reflect the AMRF abolition in Finance Act 2021
  • Include details on the procedure for payment of tax on ARF distributions.