Pensions–Personal Fund Threshold
Revenue e-Brief No. 24/2006, 23/05/06 Pensions-Claiming a Personal Fund Threshold (PFT)
The Financial Services (Pensions) Branch, Large Cases Division, has circulated information to the various pensions industry representative bodies on how individuals can claim a Personal Fund Threshold (PFT).
The PFT arises from the imposition of a “cap” on the capital value of individual pension funds. This is called the Standard Fund Threshold (SFT) and is currently set at €5m. Where an individual had a fund in excess of €5m on 07/12/05 ( Budget Day), the SFT can be replaced by a PFT on notification to Revenue, enabling the individual to retain what they held on that date. The relevant legislation is Section 14, Finance Act 2006.
The notification should be made on the appropriate form to Financial Services (Pensions) Branch before 7 June 2006. Information on how to notify Revenue of a PFT, together with the relevant notification form, can be accessed directly from the following link: