787O Interpretation and general (Chapter 2C).

(1) In this Chapter and Schedule 23B, unless the context otherwise requires—

^[17]>

“accrued pension amount”, in relation to a benefit crystallisation event of the kind referred to in paragraph 2(a)(i) of Schedule 23B in respect of a relevant pension arrangement that is a defined benefit arrangement, means the part (if any), determined in accordance with subsection (2A), of the amount represented by P in the formula in paragraph 3(aa) of that Schedule that had accrued to the individual under the arrangement on the specified date;

^<[17]

“administrator”, in relation to a relevant pension arrangement, means the person or persons having the management of the arrangement, and includes—

(a) an administrator, within the meaning of section 770(1),

(b) a person mentioned in section 784, lawfully carrying on the business of granting annuities on human life, including the person mentioned in section 784(4A)(ii),

(c) a PRSA administrator, within the meaning of section 787A(1), and

(d) an administrator of a relevant pension arrangement of a kind described in paragraphs (e) and (f) of the definition of relevant pension arrangement, as may be specified by regulations under section 787U;

“amount crystallised by a benefit crystallisation event” shall be construed in accordance with paragraph 3 of Schedule 23B and a reference to “amount of the current event” shall be construed as the amount crystallised by the benefit crystallisation event which is that event;

“amount of uncrystallised pension rights on the specified date”, in relation to an individual, shall be determined in accordance with paragraph 1 of Schedule 23B;

“annual amount of a pension” means the amount of pension payable to the individual in the period of 12 months beginning with the day on which the individual becomes entitled to the pension and on the assumption that there is no increase in the pension throughout that period;

^[26]>

“applied”, in relation to a transfer amount, means the application of the transfer amount in accordance with—

(a) subsection (5), (6), (8) or (9) of section 12 of the Family Law Act 1995,

(b) subsection (5), (6), (8) or (9) of section 17 of the Family Law (Divorce) Act 1996, or

(c) subsection (1), (3), (5) or (6) of section 123 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

as the case may be;

^<[26]

“approved retirement fund” has the meaning assigned to it by section 784A;

“approved minimum retirement fund” has the meaning assigned to it by section 784C;

“benefit crystallisation event” and the time when such an event occurs shall be construed in accordance with paragraph 2 of Schedule 23B;

“calculation A”, in relation to the annual amount of a pension, means a calculation that increases that annual amount at an annual percentage rate of 5 per cent for the whole of the period beginning with the month in which the individual became entitled to the pension and ending with the month in which the individual becomes entitled to payment of the pension at an increased annual amount;

“calculation B”, in relation to the annual amount of a pension, means a calculation that increases that annual amount by 2 per cent plus the movement in the All Items Consumer Price Index Number compiled by the Central Statistics Office starting in the month in which the individual first became entitled to the pension and ending in the month when the individual becomes entitled to payment of the pension at an increased annual amount;

“chargeable excess” shall be construed in accordance with section 787Q(4);

“current event” means a benefit crystallisation event occurring on or after the specified date;

“date of the current event” means the date on which—

(a) the individual acquires an actual entitlement to the payment of a benefit in respect of the current event under the relevant pension arrangement, whether or not the benefit is paid on, or commences to be paid on, that date,

(b) the annuity or, as the case may be, the pension would otherwise become payable under a relevant pension arrangement where the individual exercises an option in accordance with section 772(3A), 784(2A) or, as the case may be, section 787H(1),

^[4]>

(ba) the annuity would otherwise become payable under a PRSA of a kind referred to in paragraph (c) of the definition of “relevant pension arrangement” where an individual does not elect to exercise an option in accordance with section 787H(1) and instead retains the assets available in the PRSA at that date, in that PRSA or any other PRSA,

^<[4]

(c) a payment or transfer is made to an overseas arrangement by direction of the individual under the provisions of the Occupational Pension Schemes and Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations 2003 (S.I. No. 716 of 2003), or

(d) the individual, having become entitled to a pension under a relevant pension arrangement on or after the specified date, becomes entitled to the payment of that pension at an increased annual amount which exceeds by more than the permitted margin the annual amount at which it was payable on the date the individual became entitled to it;

^[26]>

“designated benefit”, “retirement benefit” and “transfer amount” have the meaning assigned to them, respectively, in—

(a) section 12 of the Family Law Act 1995,

(b) section 17 of the Family Law (Divorce) Act 1996, or

(c) section 121 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

as the case may be;

^<[26]

“defined benefit arrangement” means a relevant pension arrangement other than a defined contribution arrangement;

“defined contribution arrangement” means a relevant pension arrangement that provides benefits calculated by reference to an amount available for the provision of benefits to or in respect of the member, whether the amount so available is determined solely by reference to the contributions paid into the arrangement by or on behalf of the member and the investment return earned on those contributions or otherwise, and includes a relevant pension arrangement of the kind described in paragraphs (b) and (c) of the definition of “relevant pension arrangement”;

“excepted circumstances” means circumstances such that the increase in the annual amount of pension in payment to the individual is directly related to an increase in the rate of remuneration of all persons or of a class of persons employed in the sector in which the individual was employed and in respect of which employment the individual is entitled to the pension under the relevant pension arrangement;

^[26]>

“fund administrator” means a qualifying fund manager of an approved retirement fund or an approved minimum retirement fund or the PRSA administrator of a vested PRSA (within the meaning of section 790D(1)), as the case may be, (in this definition referred to as the ‘fund’) the beneficial owner of which is a non-member and the assets of which consist, in whole or in part, of—

(a) assets transferred to the fund by virtue of the exercise by the non-member of a relevant option in relation to the transfer arrangement (in this definition referred to as the ‘first-mentioned transfer’), or

(b) assets transferred to the fund which were previously held in another fund or funds the assets of which originated, in whole or in part, from the first mentioned transfer;”,

^<[26]

“market value” shall be construed in accordance with section 548;

“maximum tax-relieved pension fund”, in relation to an individual, means the overall limit on the amount that may be crystallised by a benefit crystallisation event or, where there is more than one such event, the aggregate of all of such amounts on or after ^[5]>the specified date^<[5][5]>7 December 2005^<[5] without giving rise to a chargeable excess;

“member”, in relation to a relevant pension arrangement, means any individual who, having been admitted to membership under the rules of the arrangement, remains entitled to any benefit under the arrangement and includes an employee within the meaning of section 770(1), the individual referred to in section 784, a PRSA contributor within the meaning of Chapter 2A and a relevant migrant member within the meaning of section 787M(1);

^[26]>

“non-member”, in relation to a relevant pension arrangement, means an individual (other than a dependent member of the family within the meaning of section 2 of the Family Law Act 1995 and section 2 of the Family Law (Divorce) Act 1996) in whose favour a pension adjustment order in respect of the retirement benefit of a member of the arrangement has been made;

^<[26]

“overseas arrangement” means an arrangement for the provision of retirement benefits established outside the State;

^[26]>

“pension adjustment order” means an order made in accordance with—

(a) section 12(2) of the Family Law Act 1995,

(b) section 17(2) of the Family Law (Divorce) Act 1996, or

(c) section 121(2) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

as the case may be, or any variation of such an order made by an order under—

(i) section 18(2) of the Family Law Act 1995,

(ii) section 22(2) of the Family Law (Divorce) Act 1996, or

(iii) section 131(3) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

as the case may be, the operation of which has not been suspended (or if suspended, or further suspended, has been revived) or discharged by an order made under any of the relevant provisions referred to in subparagraph (i), (ii) or (iii);

^<[26]

“permitted margin” means the amount by which the annual amount of the pension would be greater if it had been increased by whichever of calculation A and calculation B gives the greater amount;

“personal fund threshold”, in relation to an individual for a year of assessment, means—

^[6]>

(a) for the years of assessment 2005 and 2006, the amount of the uncrystallised pension rights on the specified date in relation to the individual where the amount of those rights on that date exceed the standard fund threshold, and

^<[6]

^[6]>

^[18]>

(a) (i) where the individual is an individual to whom the Revenue Commissioners have, before the specified date, issued a certificate in accordance with section 787P(5), the amount stated in that certificate as being the individual’s personal fund threshold, and

^<[18]

^[18]>

(a) (i) where the individual is an individual to whom the Revenue Commissioners have issued a certificate or, as the case may be, a revised certificate in accordance with section 787P as that section applied at any time before the date of the passing of the Finance (No. 2) Act 2013 (in this Chapter referred to as the “earlier certificate”), the amount stated in the earlier certificate as being the individual’s personal fund threshold, and

^<[18]

^[19]>

(ii) in any other case, for the year of assessment 2010, as on and from the specified date, and for the year of assessment 2011, the lesser of—

(I) €5,418,085, and

^<[19]

^[19]>

(ii) in any other case, for the year of assessment 2014, the lesser of—

(I) €2,300,000, and

^<[19]

(II) (A) where no benefit crystallisation event in relation to the individual has occurred on or after 7 December 2005 and the individual has uncrystallised pension rights on the specified date, the amount of the uncrystallised pension rights on the specified date in relation to the individual, where the amount of those rights on that date exceed the standard fund threshold, or

(B) where one or more than one benefit crystallisation event in relation to the individual has occurred on or after 7 December 2005 and the individual has uncrystallised pension rights on the specified date, the aggregate of the amounts crystallised by those benefit crystallisation events and the amount of the uncrystallised pension rights on the specified date in relation to the individual, where the aggregate amount of those crystallised and uncrystallised rights exceed the standard fund threshold, and

^<[6]

(b) for a year of assessment (in this paragraph referred to as the “relevant year”) after the ^[7]>year of assessment 2006^{<[7][20]>[7]>}year of assessment 2011^{<[7]<[20][20]>}year of assessment 2014^<[20], an amount equivalent to the amount determined by the formula—

A × B

where—

A is the personal fund threshold for the year of assessment immediately preceding the relevant year, and

^[3]>

B is the earnings adjustment factor, to be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris Oifigiúil;

^<[3]

^[3]>

B is—

(i) the earnings adjustment factor which may be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris Iris Oifigiúil, or

(ii) where no earnings adjustment factor is designated by the Minister for Finance, 1;

^<[3]

“previously used amount”, in relation to the standard fund threshold or, as the case may be, the personal fund threshold shall be construed in accordance with paragraph 5 of Schedule 23B;

“PPS Number”, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

^[26]>

“relevant member”, in relation to a relevant pension arrangement, means—

(a) a member of a relevant pension arrangement in respect of whose retirement benefit under the arrangement a pension adjustment order has been made in favour of a non-member, or

(b) a member of a relevant pension arrangement to which a sum representing that member’s accrued rights under the relevant pension arrangement referred to in paragraph (a) has been transferred, or subsequently transferred;

“relevant option”, in relation to a non-member and a transfer arrangement, means the option referred to in section 772(3A), 784(2A) or 787H(1), as the case may be, to the extent that those options refer to a transfer to an approved retirement fund, or where the transfer arrangement is a PRSA, the option to retain the assets of the transfer arrangement in that arrangement (or any other similar arrangement);

^<[26]

“relevant pension arrangement” means—

(a) a retirement benefits scheme, within the meaning of section 771, for the time being approved by the Revenue Commissioners for the purposes of Chapter 1,

(b) an annuity contract or a trust scheme or part of a trust scheme for the time being approved by the Revenue Commissioners under section 784,

(c) a PRSA contract, within the meaning of section 787A, in respect of a PRSA product, within the meaning of that section,

(d) a qualifying overseas pension plan within the meaning of Chapter 2B,

(e) a public service pension scheme within the meaning of section 1 of the Public Service Superannuation (Miscellaneous Provisions) Act 2004, or

(f) a statutory scheme, within the meaning of section 770(1), other than a public service pension scheme referred to in paragraph (e);

“relevant valuation factor” has the meaning assigned to it by subsection (2);

^[8]>

“specified date” means 7 December 2005;

^<[8]

^[8]>

“specified date” means ^[21]>7 December 2010^<[21][21]>1 January 2014^<[21];

^<[8]

“standard fund threshold”, in relation to an individual for a year of assessment, means—

^[9]>

(a) for the years of assessment 2005 and 2006, €5,000,000, and

^<[9]

^[22]>

^[9]>

(a) for the year of assessment 2010, as on and from the specified date, and for the year of assessment 2011, €2,300,000, and

^<[9]

^<[22]

^[22]>

(a) for the year of assessment 2014, €2,000,000, and

^<[22]

(b) for a year of assessment (in this paragraph referred to as the “relevant year”) after the ^[10]>year of assessment 2006^{<[10][23]>[10]>}year of assessment 2011^{<[10]<[23][23]>}year of assessment 2014^<[23], an amount equivalent to the amount determined by the formula—

A × B

where—

A is the standard fund threshold for the year of assessment immediately preceding the relevant year, and

^[3]>

B is the earnings adjustment factor, to be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris Oifigiúil;

^<[3]

^[3]>

B is—

(i) (i) the earnings adjustment factor which may be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris Iris Oifigiúil, or

(ii) (ii) where no earnings adjustment factor is designated by the Minister for Finance, 1;

^<[3]

^[26]>

“subsequent administrator” means the administrator of the transfer arrangement under which the non-member remains entitled to a retirement benefit under the arrangement or in respect of which the non-member’s retirement benefit under the arrangement has crystallised;

“transfer arrangement” means a relevant pension arrangement—

(a) to which a transfer amount has been applied to provide a retirement benefit for or in respect of a non-member and includes the relevant pension arrangement of the relevant member where a retirement benefit for or in respect of the non-member is provided under that arrangement of the same actuarial value as the transfer amount, or

(b) to which a sum representing the non-member’s accrued rights under an arrangement referred to in paragraph (a) has been transferred, or subsequently transferred;

^<[26]

“uncrystallised pension rights”, in relation to an individual on any date, means pension rights in respect of which the individual was not entitled to the payment of benefits in relation to those rights ^[28]>on that date.^<[28][28]>on that date;^<[28]

^[29]>

“vested RAC” means a relevant pension arrangement of a kind referred to in paragraph (b) of the definition of that term in this subsection in respect of which—

(a) payment of the annuity to the individual entitled to the annuity under the contract has not commenced, or

(b) a transfer has not been made under section 784(2A),

on or before the date on which the individual attains the age of 75 years.

^<[29]

^[24]>

(2) (a) Subject to paragraph (b), for the purposes of this Chapter and Schedule 23B, the relevant valuation factor, in relation to a relevant pension arrangement, is 20.

^[11]>

(b) The administrator of a relevant pension arrangement may, with the prior agreement of the Revenue Commissioners, use a valuation factor (in this subsection referred to as the “first-mentioned factor”) other than the factor referred to in paragraph (a) (in this subsection referred to as the “second-mentioned factor”) where the Revenue Commissioners are satisfied that—

(i) the second-mentioned factor is clearly inappropriate, and

(ii) the first-mentioned factor would be appropriate,

to use in the circumstances.

^<[11]

^[11]>

(b) Where the administrator of a relevant pension arrangement has, before the specified date, used a valuation factor (in this subsection referred to as the “first-mentioned factor”) other than the relevant valuation factor referred to in paragraph (a) then, in such a case, the first-mentioned factor is the relevant valuation factor for the purposes of this Chapter and Schedule 23B.

^<[11]

^[12]>

(c) The Revenue Commissioners may appoint a person to advise them on—

(i) whether the second-mentioned factor is clearly inappropriate in the circumstances of a particular relevant pension arrangement, and

(ii) if it is clearly inappropriate—

(I) whether the administrator of the relevant pension arrangement has satisfactorily demonstrated that a particular alternative factor would be appropriate to use in those circumstances, and

(II) if the administrator has not demonstrated that satisfactorily, what factor would be appropriate to use in the circumstances.

(d) An administrator of a relevant pension arrangement who is seeking the agreement of the Revenue Commissioners, referred to in paragraph (b), shall provide the Revenue Commissioners with all such information relevant to the consideration of the valuation factor to be used in the circumstances of that arrangement as the Commissioners may request.

^<[12]

^<[24]

^[24]>

(2) (a) Subject to paragraph (b), for the purposes of this Chapter and Schedule 23B, the relevant valuation factor in relation to a relevant pension arrangement that is a defined benefit arrangement (in this subsection referred to as the “pension arrangement”) is—

(i) on the specified date, 20, and

(ii) after the specified date, where at the date of the current event relating to the pension arrangement the individual has attained the age included in an entry in column (1) of the Table to Schedule 23B, the figure in column (2) of that Table opposite that entry (in this Chapter and Schedule 23B referred to as the “relevant age-related factor”).

(b) Where the administrator of a pension arrangement has, with the prior agreement of the Revenue Commissioners, used (before the specified date) a valuation factor (in this paragraph referred to as the “first-mentioned factor”) greater than the relevant valuation factor referred to in paragraph (a)(i) then, in such a case, for the purposes of this Chapter and Schedule 23B, the relevant valuation factor in relation to the pension arrangement is—

(i) on the specified date, the first-mentioned factor, and

(ii) after the specified date, the greater of the first-mentioned factor and the relevant age-related factor and the reference to the meaning of ‘A’ in the formula in paragraph 3(a) of Schedule 23B shall be construed accordingly.

^<[24]

^[25]>

(2A) For the purposes of this Chapter and Schedule 23B—

(a) where the individual has made a PFT notification (within the meaning of section 787P), the accrued pension amount shall be the annual amount of pension included in the statement from the administrator referred to in subsection (2)(a) of section 787P, and

(b) in any other case, the accrued pension amount shall be an amount equivalent to the annual amount of pension which would be represented by AP in the formula in paragraph 1(2)(b) of Schedule 23B, if the individual’s uncrystallised pension rights under the arrangement on the specified date were being calculated.

^<[25]

(3) For the purposes of this Chapter, where more than one benefit crystallisation event occurs in relation to an individual on the same day, the individual shall decide the order in which they are to be deemed to occur.

(4) Schedule 23B shall apply for the purposes of supplementing this Chapter and shall be construed as one with this Chapter.

^[27]>

^[2]>

(5) (a) In this subsection—

^[14]>

“applied”, in relation to a transfer amount, means the application of the transfer amount in accordance with subsection (5), (6), (8) or (9) of section 12 of the Family Law Act 1995 or, as the case may be, subsection (5), (6), (8) or (9) of section 17 of the Family Law (Divorce) Act 1996;

^<[14]

^[14]>

“applied”, in relation to a transfer amount, means the application of the transfer amount in accordance with subsection (5), (6), (8) or (9) of section 12 of the Family Law Act 1995, subsection (5), (6), (8) or (9) of section 17 of the Family Law (Divorce) Act 1996, or subsections (1) and (2), or subsection (3), (5) or (6), of section 123 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, as the case may be;

^<[14]

^[15]>

“pension adjustment order” means an order made in accordance with section 12(2) of the Family Law Act 1995 or, as the case may be, section 17(2) of the Family Law (Divorce) Act 1996 or any variation of such an order made by an order under section 18(2) or, as the case may be, section 22(2), respectively, of those Acts, the operation of which has not been suspended (or if suspended, or further suspended, has been revived) or discharged by an order made under the said section 18(2) or, as the case may be, section 22(2) of those Acts;

^<[15]

^[15]>

“pension adjustment order” means an order made in accordance with—

(i) section 12(2) of the Family Law Act 1995,

(ii) section 17(2) of the Family Law (Divorce) Act 1996, or

(iii) section 121(2) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

or any variation of such an order made by an order under—

(I) section 18(2) of the Family Law Act 1995,

(II) section 22(2) of the Family Law (Divorce) Act 1996, or

(III) section 131(3) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010,

the operation of which has not been suspended (or if suspended, or further suspended, has been revived) or discharged by an order made under any of the relevant provisions referred to in subparagraph (I), (II) or (III);

^<[15]

^[16]>

“designated benefit” and “transfer amount” have the meaning and construction assigned to them, respectively, in section 12 of the Family Law Act 1995 or, as the case may be, section 17 of the Family Law (Divorce) Act 1996.

^<[16]

^[16]>

“designated benefit” and “transfer amount” have the meaning and construction assigned to them, respectively, in section 12 of the Family Law Act 1995, section 17 of the Family Law (Divorce) Act 1996 or section 121 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, as the case may be.

^<[16]

(b) For the purposes of this Chapter and Schedule 23B, where, on or after the ^[13]>specified date^<[13][13]>7 December 2005^<[13], an individual is a member of a relevant pension arrangement and the relevant pension arrangement is, or becomes, subject to a pension adjustment order, then, notwithstanding the pension adjustment order, in calculating the amount crystallised by a benefit crystallisation event occurring on or after the ^[13]>specified date^<[13][13]>7 December 2005^<[13] in relation to the individual under the relevant pension arrangement—

(i) the designated benefit payable pursuant to the order, or

(ii) where the transfer amount has been applied, the designated benefit that would have been payable pursuant to the order if the transfer amount had not been so applied,

in respect of that benefit crystallisation event, shall be included in that calculation as if the pension adjustment order had not been made.

^<[2]

^<[27]

^[27]>

(5) For the purposes of this Chapter and Schedule 23B, where, on or after 7 December 2005, an individual is a relevant member of a relevant pension arrangement (in this subsection referred to as the ‘arrangement’) then, notwithstanding the pension adjustment order, the administrator of the arrangement shall, in calculating—

(a) the relevant member’s pension rights (within the meaning of section 787P(2)(a)(i)) in respect of the arrangement for the purposes of the statement certifying those rights (referred to in that section), and

(b) the amount crystallised by a benefit crystallisation event occurring on or after 7 December 2005 in relation to the relevant member under the arrangement, include in those calculations—

(i) the designated benefit payable pursuant to the order, or

(ii) where the transfer amount has been applied, the designated benefit that would otherwise have been payable pursuant to the order if the transfer amount had not been so applied,

as if the pension adjustment order had not been made, and where the administrator is the administrator of a relevant pension arrangement to which a sum representing the relevant member’s accrued rights under the relevant pension arrangement in respect of which the pension adjustment order has been made, has been transferred, or subsequently transferred, in whole or in part, the calculations referred to in paragraphs (a) and (b) shall reflect the sum that would otherwise have been transferred, or subsequently transferred, if no pension adjustment order had been made.

^<[27]

^[30]>

(6) Where an individual of a kind referred to in the definition of ‘vested RAC’ attains the age of 75 years prior to the date of passing of the Finance Act 2016, the relevant pension arrangement is deemed to become a vested RAC on the date of passing of that Act.

^<[30]