Application of a 30,000 rule to trivial pensions

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CatherineILF2

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In a previous post I saw a discussion of the application of this rule but I also saw that the rule was not longer relevant because of the abolition of AMRFs. I have been told that I cannot cash in a small pension pot, taking one part as a taxed lump sum and the other on a taxed basis because of a rule which say that you cannot do this if you have another pension payment bringing you over the 30,000. A post on this forum said that this rule was not relevant as above. Could you a. provide the source of the rule and b. confirm why it is no longer relevant. Many thanks.
 
Hi Gerard,
I saw this but I think this is incorrect or more likely unclear. It says where the balance of all the 'clients pension funds is less than 30,000' but in an earlier thread this was clarified to refer to funds relevant to that employment only, not all funds or benefits from other employments. Then a later post said that this was no longer relevant since AMRFs had been abolished. This was in an earlier thread on this forum around early 2023 which I found this morning. Does anyone have any other information please? Thanks
 
CatherineILF2 said:
It says where the balance of all the 'clients pension funds is less than 30,000' but in an earlier thread this was clarified to refer to funds relevant to that employment on
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No, this rule applies to all funds from all employments. Despite the abolition of the AMRF, this rule is still relevant as a pension lump based on salary and service would allow the balance only to be used to purchase an annuity otherwise.
 
@CatherineILF2

  • What age are you?
  • What type of pension is this, e.g. Occupational Pension Scheme, PRSA, Buy Out Bond, other?
  • Have you any material connection to the employer where you accumulated this pot?
 
Thanks for this- have seen it. It is from 2023. The more recent updated one from 2024 does not mention this issue at all. The wording is unclear and refers to s. 781 of the TCA which is fine as that relates to the calculation of what is allowed as a tax free lump sum but the section nor any related sections of the TCA do not mention this cap or rule at all. It seems to be a rule to do with Pensions legislation but not sure. Thanks all the same.
 
@Fortune you replied 'No, this rule applies to all funds from all employments. Despite the abolition of the AMRF, this rule is still relevant as a pension lump based on salary and service would allow the balance only to be used to purchase an annuity otherwise.'

Thank you - is this a tax rule? If so can you point me to the statutory rule please? Or is it from other legislation?
 
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