The Finance Bill 2013 proposes to reduce the maximum allowable pension on retirement (known as the Standard Fund Threshold (SFT)) from €2.3m to €2m with effect from 1 January 2014. Those individuals who have pension rights in excess of €2 million (but less than €2.3m) can protect their accrued higher capital by submitting a claim for a Personal Fund Threshold (PFT) to the Revenue Commissioners.

In the past the PFT application procedure was paper based.  However a new electronic based application process is being developed by Revenue and is expected to be introduced early next year. The time limit for making a PFT application will be 12 months after the date on which the electronic system is made available.

Contributed by Lorna Osborne & Mary Greaney.