Finance Bill 2021 - Pension Related Measures
The Finance Bill 2021 was published on 21st October and contained some pension related measures which were not contained in Budget 2022 but which had been recommended by the Interdepartmental Pensions Reform and Taxation Group in its 2020 Report. These changes are effective as at the date of signing of the Finance Bill (usually within 6-8 weeks of publication):
AMRFs
AMRF requirements will no longer have to be met for retirements processed after the signing of the Finance Bill. In addition, from 1 January 2022, all AMRFs become ARFs and ARF regulations apply to those ARFs, i.e. imputed distributions etc.
Death benefits (Occupational Pension Schemes)
Any excess over 4 x salary can either be used to purchase an annuity or be transferred to an ARF. Standard ARF conditions will apply to that ARF e.g. imputed distribution etc.
Simplification
The Bill removes the rule on transfers from occupational pensions schemes to PRSA where the member has more than 15 years’ service.
The rumoured end to Certificates of Comparison when moving benefits from occupational pensions to PRSAs (under certain conditions) is expected to be announced in the Social Welfare Bill which is due in the coming weeks.
Aviva Life & Pensions Ireland Designated Activity Company, is a private company limited by shares, registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Tel (01) 898 7950, www.aviva.ie
Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland.