Do transfers into PRSAs have ARF options?

Hi there,

I know that an employee (not shareholding director) in an Occupational Pension Scheme doesn't have the Approved Retirement Fund (ARF) options at retirement, just lump sum and annuity. If they leave the employment and transfer their fund into a Buy Out Bond, they still don't have the ARF options at retirement.

But if they transfer from an Occupational Pension Scheme into a PRSA, do they then get the ARF options at retirement?

Hi Marianne

Good point - I presume that they do AND I presume that is why the limit on transfers from occupational schemes to PRSAs is so small (€10k).

I'm not so sure - bear in mind that if the original scheme is being wound up, transfers into PRSAs are allowed regardless of fund size.

This would seem like a loop-hole to me.

I do not think any of the providers would accept the transfer (if over €10k) to a PRSA, do you know a case where it was allowed?

Hi Capital1,

Transfers of over €10,000 are permitted if a Certificate of Benefits Comparison has been provided.

A Certificate of Benefits Comparison is not required where the transfer value from the occupational pension scheme is

- less than €10,000, or

- represents a refund of contributions, or the value of accrued benefits, to a member whose employment related to the occupational pension scheme is less than 2 years and who has no preserved benefit, or

- where the scheme is winding up and the Pensions Board has been notified of its winding-up in accordance with Article 14 of the Occupational Pension Schemes (Disclosure of Information) (No. 2) Regulations 1998 (S.I. No. 349 of 1998)

Regards,

Liam D Ferguson
[broken link removed]

Thanks LD, but I understand that none of the insurance companies are willing to provide such a certificate, because the actuary signing such a cert must take out an indemnity bond for each cert?

That's my understanding. It's possible in theory but either not possible or not affordable in practice due to the actuarial fees/costs involved. Maybe for very large funds the costs would be justifiable?

I do not think that it is the "actuarial fees" so much as the indemnity that the actuary needs to take out (in accordance with legislation) is not actually available in the market - I know it sounds ridiculous, but that seems to be the problem.

Hi - can I get back to my original point? If a scheme is being wound up and therefore the transfer value can be transferred without difficulty into a PRSA regardless of fund value, does the PRSA then have the ARF options at retirement? Can anyone refer me to the specific official documentation that answers this?