Members will be aware that, with effect from 7 December 2010, the maximum allowable pension fund on retirement (known as the Standard Fund Threshold (SFT)) is reduced from just over €5.4 million to €2.3 million.

An individual who has “uncrystallised” pension rights in excess of this lower SFT on that date can protect those rights by claiming a Personal Fund Threshold (PFT) from the Revenue Commissioners. Individuals wishing to claim a Personal Fund Threshold should do so by completing a PFT Notification form and returning it to Revenue within 6 months of 7 December 2010 i.e. on or before 7 June 2011.

Where an individual becomes entitled to a pension benefit before 7 June 2011 (e.g. through retirement) in circumstances where he or she would be claiming a PFT, the PFT Notification should be made prior to the benefit arising.

The relevant form, which includes details on notifying a PFT to Revenue, was recently made available on the Revenue website and can be accessed from the Revenue website at www.revenue.ie.