Noel Harrington
Question:49. Deputy Noel Harrington asked the Minister for Finance his plans to increase the amount of €20,000 allowed under the trivial pension rule; and if he will make a statement on the matter. [20730/14]
View answerThursday, 8 May 2014
Questions (49)
Written answers
I am informed by the Revenue Commissioners that in relation to what are known as "Trivial Pensions" they allow the payment of once off pensions in certain limited circumstances. If the scheme beneficiary and trustees agree, Revenue will raise no objection to the payment of once off pensions. This may only take place where the total of all funds available for pension benefits, following payment of any lump sum benefit, is less than €20,000 (increased from €15,000 in 2007). The quantum of retirement benefits from all sources must be taken into account for the purposes of calculating the €20,000 limit.
The level at which pensions can be commuted under the "Trivial Pensions" rule is kept under review by Revenue. However, as one of the principal objectives of any pensions policy is to provide a regular income to persons during the course of their retirement it would not be advisable to allow the commutation of large numbers of pensions under the "Trivial Pensions" rule. For this reason, there are no plans at the moment to increase the level from €20,000.