After a truly elephantine gestation period, the Revenue has finally published the long-awaited Update on the transfer of pension benefits at or after Normal Retirement Date. Pensions Update No 109 (29 October 2001) brings IR 12 paragraph 10.22 into line with the Revenue’s letter of 15 May 1998 to the Occupational Pension Schemes Joint Working Group.

This letter removed the previous blanket ban (except in cases of restructuring of an employer’s pension arrangements) on such transfers. Predictably, it also stimulated a slew of correspondence, as providers and industry bodies sought clarification. Unfortunately none of this was translated into the Practice Notes and some Revenue Examiners reportedly continued to base their guidance on PN 10.22 as it stood. Pensions Update 109 also takes account of the flexibility rule about taking AVC benefits ahead of main scheme benefits, introduced since May ‘98.

Released on the same day as U109, Pensions Update 108 revises the criteria under which employer contributions paid in error can be refunded without prior Revenue authorisation.