Defined Benefit pension schemes and Buy-out Bonds
As we previously reported, individuals who have a Buy-out Bond that originated in a Defined Benefit pension scheme will now be allowed to use these Buy-out Bonds to access an Approved Retirement Fund (ARF).
This change became effective from 22 June 2016. Prior to this change, accessing an ARF was only available in respect of benefits payable from a Defined Contribution pension scheme and personal pension plans.
Revenue has now updated its Pensions Tax and Duty Manual which provides more details of these changes. Revenue eBrief No. 72/16, which is available on the Revenue website, provides more information on the changes.