The Finance Act 2021, which was signed into law on 21 December 2021 included some important updates for our customers, in particular our Approved Minimum Retirement Fund (AMRF) and Vested Personal Retirement Savings Account (Vested PRSA) customers.
Removal of the specified income requirement/AMRF
The requirement to have the specified pension income of €12,700 per year or have €63,500 invested in an AMRF in order to invest in an Approved Retirement Fund (ARF)/take taxable cash has been removed.
This means that the AMRF product is no longer needed and the option to take a 25% retirement lump sum and purchase an ARF or take taxable cash is now available.
You do not need to take any action if you had an AMRF with us. All New Ireland AMRFs have now been automatically converted to ARFs.
- Vested PRSAs
The requirement to set aside €63,500 of a vested PRSA policy has been removed following the passing of the Finance Act. Vested PRSA customers now have access to the full value of their vested PRSA policy, and will be subject to imputed distribution requirements where applicable.
- Customer Communications
We will send letters to all AMRF and Vested PRSA customers before the end of Quarter 1 2022 outlining the changes that have come in to effect.
Additional important changes
- Changes to the rules for transfers from Occupational Pension Schemes (OPS) to Personal Retirement Savings Accounts (PRSA)
The requirement to have less than 15 years’ scheme service on transferring from an Occupational Pension Scheme to a PRSA has been removed.
- Death In Service – Changes to options for dependants
The requirement under an Occupational Pension Scheme to purchase a dependant’s annuity following the payment of the Revenue maximum lump sum on death in service now extends to allow dependants to purchase an ARF as an alternative.
If you have any questions, please contact your Financial Broker or Advisor or see our phone and email contact details here