Pension Transfer

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Pension arrangements generally allow you to transfer your pension benefits from one arrangement to another. The transfer rules depend on the arrangement you are transferring from and the arrangement you are transferring to.

Transfers Options

  • Benefits from a PRSA can be transferred to another PRSA, to an occupational pension scheme or to an overseas arrangement.

  • Benefits from a retirement annuity contract can be transferred to another RAC or to a PRSA.

  • Benefits from an occupational scheme can be transferred to another occupational scheme, a PRSA, a buy-out bond (or personal retirement bond) with an insurance company, or an overseas pension arrangement.

The rules and restrictions that apply depend on the circumstances.

Q1. Can I transfer pension benefits from other sources into a PRSA?

The answer is yes and transfer values can be paid into a PRSA from 5 different sources:

  1. From another PRSA

  2. From a Personal Pension Plan

  3. From an Occupational Pension Scheme in the State

  4. A refund of personal contributions from an Occupational Pension Scheme in the State

  5. From an Overseas pension arrangement

Q2. Can I transfer my PRSA benefits to another pension if I change jobs?

As a PRSA is essentially your personal pension plan, you can normally bring it from job to job and from employment to self-employment or vice versa which leaves this type of pension plan very flexible. You can also transfer your PRSA benefits to an occupational pension scheme or another PRSA without charge.

Q3. Can I transfer occupational pension scheme benefits to a PRSA?

You can only transfer your occupational pension scheme benefits to a PRSA if you have been a member of the scheme for 15 years or less and the scheme is being wound up or you are changing job. You cannot transfer your occupational pension scheme benefits to a PRSA if you have been a member of the scheme for more than 15 years.

Note: If you have paid AVCs to an occupational pension scheme, those may be transferred to a PRSA and the above rules do not apply.

Preservation and Transfer of Benefits

There are specific rules about what happens if you leave the pension scheme for whatever reason, for example, if you change jobs or you become self-employed or retire early without a pension. Your benefits from the pension scheme may be preserved within the scheme or transferred to another scheme. If you have at least 2 years service, you are entitled to a preserved benefit if you leave before the normal retirement age. A preserved benefit means that you get a pension when you reach the scheme's normal retirement age. (Prior to 2 June 2002, 5 years service was needed to qualify for preservation).

Alternatively, you can ask the trustees to transfer your pension rights to a new pension scheme.

Can I transfer to an AMRF/ARF or take a taxable lump sum?

An ARF is a tax-free investment held in your own name and administered by an approved provider. A wide range of investment options exists. Any monies drawn from the fund, either capital drawdown or income, are fully taxable. The funds in the ARF belong to the individual and form part of the person’s estate.

These options are available if you:

  • have AVCs in an occupational pension scheme and the rules of the plan permit these options; or

  • are a member of a defined contribution scheme; or

  • are a company director who controls more than 5% of the voting rights in your company.

In order to introduce an element of security in retirement, minimum retirement income requirements exist for those who choose to transfer to an ARF. If you are under 75, you are required to demonstrate a guaranteed income of one-and-a-half times the State pension (currently €18,000) per annum. This amount can include State pensions. If you are unable to meet this minimum, you must either transfer an amount equal to ten times the State pension (currently €119,800) to an Approved Minimum Retirement Fund (AMRF), or purchase an annuity which will bring up your level of guaranteed income to the minimum amount.

You should consider taking advice when considering your retirement options, especially where you are considering investing in an ARF/ AMRF. In practice with an ARF/AMRF you may be giving up a guaranteed income for your life and replacing it with an investment policy which, if you draw a regular income from it, could run out of money before your death.