How new changes to the Finance Act 2021 will affect customers

With the Finance Act now in play, retirees will see a few changes this year.

What’s changed?

• At retirement before investing in an Approved Retirement Fund (ARF) or taking a taxable lump sum you no longer need to meet the following requirements:
  • Invest €63,500 into an Approved Minimum Retirement Fund (AMRF)
  • Use €63,500 to purchase an annuity (pension income for life)
  • Keep €63,500 as a restricted fund in a vested PRSA (vested Personal Retirement Savings Account)
  • Have a guaranteed pension income of €12,700 a year

 As a result, AMRF plans will no longer be available.

• The death in service options available from company pension plans have been expanded to allow for the deceased’s spouse to invest in an ARF as an alternative to a spouse’s annuity.
• The restriction which prevented those in company pensions with their employer for more than 15 years from transferring to a PRSA has been removed. Other requirements still apply when transferring to a PRSA.

What was an AMRF?

Previously, an AMRF and Vested PRSAs were available after retirement if you chose to invest your retirement savings in an ARF or leave it in your PRSA. The purpose was to help secure an income throughout retirement if you had a guaranteed pension income less than €12,700 a year.

I have an AMRF, how will this impact me?

Your AMRF plan automatically become an ARF on 1 January.  This change will give you greater flexibility regarding your withdrawal options.

Irish Life are writing out to all existing AMRF customers to let you know about this change, you don’t need to do anything.

I have a vested PRSA restricted fund, how will this impact me?

The restricted fund requirement is now removed from your vested PRSA.  This change will give you greater flexibility regarding your withdrawal options.

Irish Life are writing out to all existing vested PRSA customers to let you know about this change, you don’t need to do anything.