As I noted in my response to PQ No. 475 of 11 September 2023, I am aware that there is a difference in the tax treatment where an Approved Retirement Fund (ARF) is inherited by a child or a foster child.
However, I would note that this issue is more complex than a single difference in one particular pension product. The definition of child which is the basis for the ARF provisions applies across a wide range of tax legislation in the Taxes Consolidation Act 1997.
In addition when considering pensions, the same tax treatment and therefore the same distinction applies to, for example, Personal Retirement Savings Products. For occupational pensions schemes there can be a range of different treatment for foster children depending on the rules of scheme.
I am cognisant of the need to ensure foster children are treated equitably within the taxation system, but this must progress in a comprehensive, considered matter, with suitable safeguards, and considering not just pension and inheritance tax, but also any implications for other taxes. My officials, together with officials in the Revenue Commissioners, are continuing to examine this complex issue.