The Finance Bill 2021 was signed into law on 21 December 2021. It included several significant pension changes based on some of the recommendations detailed in the report produced by the Inter-Departmental Pensions Reform & Taxation Group (IDPRTG).
Changes to Approved Minimum Retirement Funds (AMRFs)
This article focusses on the significant changes relating to Approved Minimum Retirement Funds (AMRFs) as set out in the Finance Act 2021 - and the impact on your clients who have existing AMRFs with Zurich Life. The changes can be summarised as follows:
1. The AMRF requirement no longer applies at Retirement/Maturity to individuals wishing to avail of the Approved Retirement Fund (ARF) option from Occupational Pension Schemes, Personal Retirement Bonds, Personal Pensions (PP)/ Retirement Annuity Contracts (RAC’s) and Personal Retirement Savings Accounts (PRSA’s).
2. On 1 January 2022 all existing AMRFs became ARFs - and the legislative rules applying to ARFs now apply to these former AMRFs.
3. The legislative rules applying to AMRFs and conditions relating to AMRFs were repealed with effect from 1 January 2022 – and Qualifying Fund Managers cannot accept any assets into an AMRF after 1 January 2022.
4. The above changes to AMRFs also apply to Vested-PRSA AMRFs (a Vested-PRSA is a PRSA where the Retirement Lump Sum has been paid out and the residual fund remains in the PRSA rather than transferred to an AMRF). A Vested-PRSA AMRF related to the requirement to ring-fence up to €63,500 in the Vested-PRSA.
We are currently updating all of our ARF sales literature and pension claim forms to reflect this change. New versions will be available on Zurichbroker.ie shortly. We will also send a communication once these are finalised and available for download.