PERSONAL FUND THRESHOLD NOTIFICATION
This form should only be used if you are retiring on or after 1 January 2014 and
before the electronic notification system is in place.
Please read the notes attached and the guidance note – “Changes to the Standard Fund Threshold Regime
Finance (No.2) Bill 2013” on the Revenue website (www.revenue.ie) before completing this form.
In accordance with Section 787P(4), Taxes Consolidation Act (TCA) 1997, I wish to notify the Revenue
Commissioners that I have a Personal Fund Threshold (PFT).
COMPLETE IN BLOCK LETTERS
PART A
Name:
Address:
Date of Birth:
D D M M Y
Y
Y
Y
Telephone No.:
PPS No.:
Amount of my PFT as on 1 January 2014: €
Note: this cannot exceed €2.3 million.
PART B
Please provide the following particulars for each pension arrangement in respect of which the PFT
Notification arises – use a continuation sheet where you have more than one arrangement.
Name of administrator:
Address:
Telephone No.:
Name of the arrangement:
Type of arrangement, i.e. defined benefit or defined contribution:
Revenue Approval Reference Number
(where the arrangement is an occupational pension scheme):
In the case of a defined contribution arrangement, the type of
the arrangement, e.g. occupational pension scheme, PRSA,
Retirement Annuity Contract, AVC, Buy Out Bond etc.:
The amount of your pension rights under the arrangement on
1 January 2014 as certified by the administrator in accordance
with Section 787P(2)(a)(i) TCA 1997:
€
Where the arrangement is a defined benefit arrangement, the annual
amount of pension accrued as at 1 January 2014 as certified by the
administrator in accordance with Section 787P(2)(a)(ii) TCA 1997:
€
I declare that to the best of my knowledge and belief, the information I have given on this notification, any
continuation sheets and in the attached schedule is correct and complete.
Signature:Date:
RPC004251_EN_WB_L_1
D D M M Y
Y
Y
Y
Schedule
Set out the calculation of the PFT amount based on the details provided above (see notes 9 to 11) – if necessary use
a continuation sheet. Note, if the aggregate of the capital values of your pension arrangements exceeds €2.3 million,
the PFT is limited to €2.3 million.
Notes on Notifying a Personal Fund Threshold (PFT) to Revenue
These notes are for general guidance only and do not purport to be a definitive legal interpretation of the relevant
statutory provisions which are contained in Chapter 2C of Part 30 of, and Schedule 23B to, the Taxes Consolidation
Act (TCA) 1997.
1. How do I make a PFT Notification?
Revenue is in the process of developing a new electronic PFT Notification facility. The relevant legislation
(Section 787P(2)(b) TCA 1997) requires a PFT Notification to be made electronically within 12 months of the new
facility becoming available.
However, regardless of this 12 month period for notification, where an individual becomes entitled to a pension
benefit after 1 January 2014 (e.g. through retirement) in circumstances where he or she would be claiming a PFT,
the notification must be submitted to Revenue prior to the benefit arising. In such circumstances, this form should
be used to claim a PFT, if the electronic system has not yet become available.
2. What should I include in a PFT Notification?
You should include the capital value of all pension arrangements that have yet to come into payment to you and
also the capital value of all pension arrangements that came into payment between 7 December 2005 and
1 January 2014. See notes 9 to 11 below for information on how to establish the relevant capital values, the total
of which must exceed €2 million for you to be eligible to make this application.
3. Where should the PFT Notifications be sent?
Completed PFT Notification forms should be sent to:
Office of the Revenue Commissioners,
Financial Services (Pensions),
Large Cases Division,
Ballaugh House,
73-79 Lower Mount Street,
Dublin 2.
4. Is there a limit on the PFT that I can claim?
Yes. Regardless of the overall capital value of your pension arrangements, in no case may your PFT exceed
€2.3 million, i.e. the amount of the Standard Fund Threshold (SFT) that applied from 7 December 2010 to
31 December 2013.
5. How will I know that my PFT has been accepted?
Assuming everything is in order, Revenue will issue a certificate to you generally within 30 days of receipt of your
PFT Notification, which will state the amount of your PFT.
6. What should I do with the PFT Certificate?
You should retain the PFT certificate carefully as you will have to produce it to your pension scheme(s)
administrator(s) when your pension(s) eventually come into payment so that the administrator can determine if a
chargeable excess arises on which tax needs to be paid.
7. I already have a PFT certified by Revenue before these latest changes in the legislation and the amount of
the PFT exceeds €2.3 million – do I need to apply again?
No. You do not need to apply for a new PFT certificate. You retain the existing PFT amount.
8. I retired before 1 January 2014 and the capital value of my pension fund exceeded €2 million at that time –
do I need to do anything now?
No. If you have already retired and have become entitled to all of your pension rights before 1 January 2014 and
were not contributing to a pension scheme on that date (i.e. building up additional pension rights) the new lower
SFT does not affect you.
9. Where can I get the capital value of my Defined Contribution Arrangement(s) on 1 January 2014?
You must request and obtain a statement from the administrator(s) of your defined contribution pension
arrangement(s) (e.g. defined contribution occupational pension scheme, RAC, PRSA, AVC, Buy Out Bond etc.)
certifying the capital value of your pension rights on 1 January 2014, as calculated in accordance with the
provisions of Chapter 2C, Part 30 of, and Schedule 23B to, the TCA 1997.
The figure will be the value of any cash and non-cash assets held in the arrangement(s) on 1 January 2014 that
represents your accumulated rights under the arrangement(s) at that date. In the case of non-cash assets, the
value will be the market value of those assets on that date.
10. How do I establish the capital value of my Defined Benefit pension arrangement(s) on 1 January 2014?
As in the case of defined contribution arrangements, you must request and obtain a statement from the
administrator(s) of your defined benefit arrangement(s) certifying the amount of your pension rights on 1 January
2014, as calculated in accordance with the provisions of Chapter 2C, Part 30 of, and Schedule 23B to, the TCA
1997.
If your defined benefit arrangement(s) provides a lump sum commutation option, the amount of your pension
rights will be the annual amount of the gross pension (i.e. before any commutation for a lump sum) that you
would have been entitled to under the rules of the arrangement(s) if you had retired on 1 January 2014 at your
salary and service on that date and on the assumption that you had attained normal retirement age on that date,
multiplied by 20 (the standard capitalisation factor).
If your defined benefit arrangement(s) provides a separately accrued lump sum entitlement (otherwise than by
way of commutation of part of the pension) e.g. public service schemes, the value of the lump sum entitlement
(calculated on the same assumptions as above) is added to the capital value of the defined benefit pension to
arrive at the overall capital value of your pension rights on 1 January 2014.
11. How do I take account of a pension benefit that came into payment since 7 December 2005 in my PFT
Notification?
Pension benefits that have already come into payment since 7 December 2005 are known as “crystallised”
pension rights. These could include, for example, the commencement of a pension or annuity, the receipt of
a pension lump sum or the proceeds of a pension fund being placed in an Approved Retirement Fund (ARF),
an Approved Minimum Retirement Fund (AMRF) or retained in a vested PRSA. These are known as “benefit
crystallisation events” (BCEs).
You must request and obtain a statement from the administrator(s) of each pension arrangement in respect of
which crystallised pension rights have occurred certifying the capital value of those rights. In the case of pension
benefits that arose from a defined contribution arrangement(s), the capital value of the pension rights is the value
of the cash/assets that were used to, say, purchase your annuity or that were transferred to an ARF for you. In
the case of a pension lump sum, the value will simply be the amount of the lump sum paid to you.
In the case of crystallised pension rights under a defined benefit arrangement(s) with a lump sum commutation
option, the capital value of the pension rights is the gross amount of pension that would have been payable
to you (before any commutation for a lump sum) in the first 12 months from the date you became entitled to
it, multiplied by 20 (the standard capitalisation factor). Note it is not the initial or the current annual rate of the
pension paid to you.
In the case of defined benefit arrangements with separately accrued lump sums, the capital value of the
crystallised pension rights is the amount of pension paid to you in the first 12 months from the date you became
entitled to it multiplied by the standard capitalisation factor of 20 plus the cash value of the separate pension lump
sum paid to you at that time.
12. Is it necessary to retain records?
Yes. Section 787P(3) TCA 1997 places an obligation on both you and the administrator(s) of your pension
arrangement(s) to retain the certifying statements, referred to in earlier paragraphs, for 6 years and make them
available to an officer of the Revenue Commissioners on being required by a notice in writing to do so. In your
case it is for 6 years after the date of the final BCE (see paragraph 11 for examples of BCEs) relating to all of your
pension arrangements. In the case of the administrator(s) it is for 6 years after the date of your last BCE arising
under the pension arrangement of which he or she is administrator.
13. Will penalties arise if I fail to retain records?
Yes. Penalties arise if you fail to comply with any of the obligations imposed on you under the relevant legislation.
The penalty is €3,000 for each failure.
14. Things to be aware of
l PFT Notifications may be audited by Revenue.
l A false declaration on a PFT Notification form may leave you liable to prosecution.