Dáil Éireann Debate, Tuesday - 27 July 2021
337. Deputy Ged Nash asked the Minister for Finance the estimated yield to the Exchequer by reducing the standard fund threshold from €2 million to €1 million; and if he will make a statement on the matter. [39891/21]
Amharc ar fhreagraThe Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes, which was introduced in Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million. It was subsequently reduced to €2.3 million with effect from 7 December 2010 and further reduced to €2 million with effect from 1 January 2014.
Information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be supplied to Revenue by the administrators of pension schemes and personal pension arrangements. There is, therefore, no underlying data available to Revenue on which to base reliable estimates of the savings that would arise specifically from the change to the SFT indicated in the question.
