I propose to take Questions Nos. 543 and 644 together.
There are no provisions in health sector superannuation schemes, or arrangements with the UK health service or any other health service in the EU or elsewhere for the combining of public health pensionable service.
Transfers of pension benefits from non-public service pension schemes, either within the State or outside, may be facilitated by way of Transfer Value taken into an Irish public service pension scheme, subject to the rules of the relevant pension arrangements and the taxation rules applying in the relevant jurisdiction.
Subject to the rules governing the relevant superannuation arrangements, it is possible for a person with a UK pension (private or public) to take a Transfer Value into an Irish pension scheme (private or public). However, a tax charge will ordinarily apply to the UK pension benefits on transferring them out of the UK, unless the overseas scheme to which they are being transferred has ‘Qualifying Recognised Overseas Pension Scheme’ (QROPS) status.
Although many Irish public service pension schemes were previously QROPS registered, most such schemes have since been deregistered. The reason for this is that, in 2017, UK tax rules introduced an ‘overseas transfer charge’ that could fall due in certain circumstances and, where it does, the member and the scheme administrator “will be jointly and severally liable”, thus making an Irish public service employer (and ultimately the Exchequer) liable for an individual’s tax liability arising in relation to pension benefits accrued in a different State.
Where an individual is seeking to transfer their pensionable service across jurisdictions, it is advisable that they seek advice from their pension administrator(s) and/or the relevant tax authorities.
This Government is committed to improving healthcare services, enhance patient outcomes, and address health inequalities across the entire island. Given the similar health challenges faced by each jurisdiction, working collaboratively to maximise the potential for service planning and delivery is of the utmost importance and, as such, enhancing North-South cooperation will continue to be a priority for the Irish Government.
