Removal of the specified income requirement/AMRF
With effect from 22nd December, the requirement to have the specified pension income of €12,700 p.a. or have €63,500 invested in an AMRF in order to invest in an ARF/take taxable cash has been removed. The effect being, that an individual is no longer required to qualify under the above requirements to purchase an Approved Retirement Fund (ARF).
In addition, the following three changes were brought into effect:
1. Conversion of existing AMRF policies
From 1st January 2022, all AMRFs are required to convert to ARFs. Any existing AMRF will be automatically converted to an ARF on all systems.
2. AMRF Clients with existing ARF policies with the same institution
Where a Client also has an ARF with a particular institution and has a regular income set up, the new ARF policy (i.e. converted AMRF Contract) will replicate the frequency of the existing ARF income and the payment will be set up for the minimum amount liable under imputed distribution rules.
3. Vested PRSAs
The requirement to set aside €63,500 of a vested PRSA Plan has been removed following the passing of the Finance Act. Vested PRSA Clients now have access to the full value of their vested PRSA Contract and will be subject to imputed distribution requirements where applicable.