Revenue eBrief No. 149/22

20 July 2022 

Revenue Pensions Manual - updates to Chapters 7, 10, 12, 13, 16 and 24

A number of updates have been made to the Revenue Pensions Manual to reflect amendments in Finance Act 2021. The main changes are highlighted below.

 Chapter 7 - Lump sum benefits and commutation

• Paragraph 7.4 is updated to:
  • Remove the reference to the specified minimum income requirement with regards to the investment in an AMRF, and
  • State that Trivial Pension rules may be applicable where residual funds are available to secure spouses’, civil partners’ and dependents’ pensions. 

Chapter 10 - Benefits on death-in-service

• Paragraphs 10.2 and 10.3 are updated to state that occupational pension scheme rules can provide that the aggregate pension that can be provided for a spouse or for dependants of a deceased member of a scheme who dies in service, can be taken as either a pension or the benefits transferred to an Approved Retirement Fund (ARF).
• Paragraph 10.2 of the manual is updated to state:
  • where benefits are transferred to an ARF, the rules relating to ARFs shall apply and a link to Chapter 23 - ARFs is included,
  • where payment of death-in-service benefits including benefits transferred to an ARF, or provided as a dependent’s pension, it is not considered a benefit crystallisation event, and
  • where benefits are payable and do not exceed the aggregate value of €330 per annum, an approved scheme may permit full commutation of the benefits. 

Chapter 12 - Withdrawal from service (leaving a pension scheme)

• Paragraph 12.6 is updated to include that in cases where a withdrawing employee dies before deferred benefits become payable benefits may transfer to an ARF for a spouse, civil partner and/or dependants, provided on the basis explained in Chapter 10 of the Pensions Manual. 

Chapter 13 - Transfer Payments

• Paragraph 13.2 is updated to:
  • remove reference to the 15 Year Rule requirement for transfers from an occupational pension scheme to a PRSA, and
  • State that where details are provided for transfers between schemes, details of any irrevocable waiver of the right to a lump sum must be included. 

Chapter 16 – Group Schemes

• Paragraph 16.1 has been amended to include that tax relief is available for pension contributions made by a company (described as a “relevant contributor”) to occupational pensions schemes to benefit current or former employees of another company where the contributions are paid under the terms of a legally binding agreement between two or more companies, and not only in cases where the other company is a party to that agreement. 

Chapter 24 – Personal Retirement Savings Accounts

• Paragraph 24.2 is updated to provide some examples of calculating tax relief.
• Paragraph 24.4 is updated to remove the previous AMRF investment requirements on PRSA benefits being taken on retirement. References to AMRF have been removed throughout the manual.
• Paragraph 24.7 is updated to state:
  • the removal of AMRF and its impact on PRSAs when exercising the ARF option, and
  • the rules for PRSAs regarding ring-fencing and administration of vested PRSAs.
• Paragraph 24.8 is updated to remove the 15-year rule for transfers from an occupational pension scheme to a PRSA.
• Paragraph 24.9 is updated to remove legacy rules regarding imputed distributions of vested PRSAs.