This is all noise. The legislation deals with lump sum payments from an occupational pension scheme. A PRSA is not an occupational pension scheme. There have been no instances of Revenue “going back” and “connecting payments” from a PRSA to a previous redundancy. It can’t happen based on the current rules.
That's not true. It's the same legislation.
As stated in paragraph 2, a lump sum to which this chapter applies is a retirement lump sum paid to an individual under the rules of a relevant pension arrangement including, for example, a lump sum paid under any of the following arrangements:
Revenue approved occupational pension schemes (including AVC arrangements),
Revenue approved retirement annuity contracts (RACs),
Personal Retirement Savings Accounts (PRSAs),
Pan-European Personal Pension Products (PEPPs),
Qualifying overseas pension plans (within the meaning of Chapter 2B, Part 30 TCA),
Public service pension schemes as defined in the Public Service Superannuation (Miscellaneous Provisions) Act 2004, and
Statutory schemes – that is schemes established by or under any enactment (which includes all statutory schemes that fall outside of the definition of public service pension schemes mentioned above).
The reason people say the waiver falls away has nothing to do with revenue. It is gap where the PRSA provider does not ask about the waiver on their application form. It's a classic 'Dont Ask, Don't tell' policy. Even do a quick google search and see how many pension/financial advisors will actually openly suggest this as an option when discussing pensions and redundancy. They don't.
It's not up to revenue to connect payments to previous redundancy but they can if they want. The onus is on the pension administrator. As I said, the administrator of our occupational scheme (one of the largest) made it clear that the waiver form would be provided to the PRSA provider if they asked for it or not. It was then up to the PRSA provider to do what they like.
Has anyone here actually done this (themselves or client) in the past two years and seen a waiver fall away?