From 22 June 2016, Revenue practice for retirement options on the treatment of Personal Retirement Bonds (PRB’s) for former members of Defined Benefit schemes has changed. Previously, these policyholders had to take benefits under the ‘traditional’ revenue formula of: a lump sum based on salary and service from the previous employer, and the remainder of the fund had to be used to …
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The 2013 Finance Act reduced the Standard Pension Fund Threshold for individuals to €2 million, effective from 1st January 2014. While the majority of people will not be effected by this limit, those with a fund in excess of this amount at 1st January 2014 have just a few weeks left to apply for a Personal Fund Threshold (PFT). The …
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The Finance Bill was published on 23rd October 2014, and included a number of proposed changes to the treatment of Approved Minimum Retirement Funds (AMRF’s) and Approved Retirement Funds (ARF’s). Approved Minimum Retirement Funds (AMRF’s) Currently any growth in the value of an AMRF over the initial investment amount can be withdrawn by the client as a taxable distribution. This …
Read MoreTwo important changes to pensions were passed into law in the Finance Act last week. Each are covered below. 1. Access to AVC’s Members of occupational pension schemes can now access up to 30% of their Additional Voluntary Contributions pre-retirement. Tax at 41% will be deducted from such withdrawals. This is a welcome route for members to access some cash …
Read MorePension Fund Levy – Further Update Despite fierce opposition and much criticism, the Finance Bill (No.2) 2011 was passed into law on 22nd June last. This bill provides the legislation for the introduction of the levy on pension schemes announced in the recent Jobs Initiative. Key Points: A levy of 0.6% on the market value of pension assets under management, to raise €470 …
Read MoreThe Government last night announced a levy of 0.6% of the market value of private pension funds. This is intended to raise €470 million this year for the exchequer, and the scheme is intended to run for 4 years from 1st January 2011. The levy will apply to occupational pension schemes, personal pensions and PRSA’s. The levy does not apply to public service pensions. …
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