787K Revenue approval of PRSA products.

(1) Subject to subsection (2) and to sections 787H and 787L, the Revenue Commissioners shall not approve, for the purposes of section 94(3) of the Pensions Act, 1990, a PRSA product (within the meaning of Part X of that Act) unless it appears to them to satisfy the following conditions—

(a) that the arrangements in respect of that product will be entered into by an individual with a person lawfully carrying on in the State the business of a PRSA provider,

(b) that it includes provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment, and

(c) that it does not—

(i) provide for the payment of any sum or the making available of PRSA assets, by that person during the life of the individual of any sum except—

(I) sums payable by means of annuity to the individual,

(II) a sum payable without deduction of tax by way of lump sum, in accordance with section 787G(3)(a),

(III) assets transferred to an approved retirement fund or to an approved minimum retirement fund, in accordance with section 787H(1), or

(IV) assets made available to the PRSA contributor by the PRSA administrator, where the PRSA administrator retains such assets as would be required to be transferred to an approved minimum retirement fund if the PRSA contributor opted in accordance with section 787H(1),

(ii) provide for the annuity or other sums payable to the individual to commence or for assets to be made available to the individual before the individual attains the age of 60 years or after he or she attains the age of 75 years,

(iii) provide for the payment by that person of any other sums except sums payable by means of annuity to the individual’s ^[3]>widow or widower^<[3][3]>widow, widower or surviving civil partner^<[3] and any sums which, in the event of no annuity or other benefits becoming payable either to the individual or to a widow or widower, are payable to the individual’s personal representatives by way of transfer of the PRSA assets to the estate of the PRSA contributor,

(iv) provide for the annuity, if any, payable to a ^[6]>widow or widower^<[6][6]>widow, widower or surviving civil partner^<[6] of the individual to be of a greater annual amount than that paid or payable to the individual, or

(v) provide for the payment of any annuity otherwise than for the life of the annuitant.

(2) The Revenue Commissioners may, if they think fit and subject to any conditions they think proper to attach to the approval under section 94 of the Pensions Act, 1990, approve, for the purposes of section 94(3) of that Act, a product otherwise satisfying the conditions referred to in subsection (1), notwithstanding that the product provides for one or more of the following matters—

(a) the payment to the individual of an annuity or other sums or the making available of assets of the PRSA to the individual commencing before he or she attains the age of 60 years, where the annuity or other sums are payable on the individual becoming permanently incapable through infirmity of mind or body of carrying on his or her own occupation or any occupation of a similar nature for which he or she is trained or fitted,

(b) in the case of an individual being an employee, the payment to the individual of an annuity or other sums or the making available of assets of the PRSA to the individual commencing on retirement at age 50 or over,

(c) where the individual’s occupation is one in which persons customarily retire before attaining the age of 60 years, the payment of the annuity or other sums to commence or the making available of assets of the PRSA to commence before the individual attains that age (but not before he or she attains the age of 50 years),

(d) the annuity payable to any person to continue for a term certain (not exceeding 10 years) notwithstanding his or her death within that term, or the annuity payable to any person to terminate, or be suspended, ^[4]>on marriage (or remarriage)^<[4][4]>on marriage or remarriage or on entering into a civil partnership or a new civil partnership^<[4] or in other circumstances,

(e) in the case of an annuity which is to continue for a term certain, the annuity to be assignable by will and, in the event of any person dying entitled to the annuity, the annuity to be assignable by his or her personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of the annuity to a legacy or to a share or interest in the estate.

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(2A) A PRSA product (within the meaning of Part X of the Pensions Act 1990) shall neither cease to be an approved product under section 94 of that Act nor shall the Revenue Commissioners be prevented from approving a product under that section notwithstanding that the product permits the PRSA administrator to make available from the PRSA assets, to such extent as may be necessary, an amount for the purpose of discharging a tax liability in relation to a PRSA contributor, under the provisions of Chapter 2C of this Part, in connection with a relevant payment to the PRSA contributor.

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(2B) A PRSA product (within the meaning of Part X of the Pensions Act 1990) shall neither cease to be an approved product under section 94 of that Act nor shall the Revenue Commissioners be prevented from approving a product under that section notwithstanding that the product permits the PRSA administrator, where the PRSA contributor comes within the provisions of section 787TA, to make available from the PRSA assets to such extent as may be necessary an amount for the purposes of an option exercised by the PRSA contributor in accordance with that section requiring an amount representing the value of, or part of the value of, the PRSA contributor’s accrued rights under the product at the date of the exercise of the option to be transferred to the PRSA contributor by the PRSA administrator.

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(2C) A PRSA product (within the meaning of Part X of the Pensions Act 1990) approved under section 94 of that Act, shall not cease to be an approved product where, notwithstanding anything contained in the terms of the product as approved, the PRSA administrator makes an amount available from the PRSA assets to the PRSA contributor or, as the case may be, where the PRSA is subject to a pension adjustment order, to the spouse or former spouse or civil partner or former civil partner of the PRSA contributor (in this subsection referred to as the ‘relevant individual’) on foot of the relevant individual availing of an option in accordance with section 782A.

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(2D) A PRSA product (within the meaning of Part X of the Pensions Act 1990) approved under section 94 of that Act, shall not cease to be an approved product where, notwithstanding anything contained in the terms of the product as approved—

(a) the PRSA administrator—

(i) on or before 31 March 2017—

(I) commences payment of an annuity to the PRSA contributor,

(II) pays a lump sum to the PRSA contributor, in accordance with section 787G(3)(a),

(III) makes assets of the PRSA available to the PRSA contributor, or

(IV) transfers assets of the PRSA to an approved retirement fund in accordance with section 787H(1),

or

(ii) in priority to any payment, making of assets available or transfer referred to in subparagraph (i), makes available from the PRSA assets, to such extent as may be necessary, an amount for the purposes of discharging a tax liability in relation to the PRSA contributor under the provisions of Chapter 2C of this Part in respect of the PRSA,

(b) insofar as subparagraph (i) of paragraph (a) is concerned, the PRSA is deemed to be a vested PRSA in accordance with section 790D(1A), and

(c) insofar as subparagraph (ii) of paragraph (a) is concerned, the PRSA is a vested PRSA within the meaning of paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1).

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(3) Where, having regard to the provisions of this Chapter, the Revenue Commissioners are, at any time, of the opinion that approval of a product under section 94 of the Pensions Act, 1990, ought to be withdrawn they shall give notice in writing to the Pensions Board of that opinion and such a notice shall specify the grounds on which they formed that opinion.

(4) Where approval of a product is withdrawn pursuant to section 97 of the Pensions Act, 1990, there shall be made such assessments or amendment of assessments as may be appropriate for the purpose of withdrawing any relief given under this Chapter consequent on the grant of the approval.