Joe Carey (Clare, Fine Gael)
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To ask the Minister for Finance further to Parliamentary Question 39 of 7 November 2012, if he will respond to a query regarding a pension in respect of a person (details supplied) in County Clare; and if he will make a statement on the matter. [53711/12]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy’s previous question related to a proposal from IBEC to allow access to certain pension savings on a pre-retirement basis which would represent a move from current principles and practice. The IBEC proposal is being examined as outlined in my reply. The circumstances outlined in the “details supplied” with this question appear to relate to the options available to an individual to access pension benefits where the pension fund is relatively small.

I am advised by the Revenue Commissioners that under Revenue rules relating to the commutation of trivial pensions there is no objection where the scheme trustees and the beneficiary agree to the payment of once-off pensions at the point of retirement in certain circumstances. This may take place where the total of all funds available for pension benefits, following payment of any lump sum benefit, is less than €20,000. Prior Revenue approval is not required. The quantum of retirement benefits from all sources must be taken into account for the purpose of calculating the €20,000 limit. The rates of tax and PRSI to be applied to the commuted amount are those that apply to any other pension payment.

I am further advised by the Commissioners that the website relating to the Pension Scheme mentioned in the “details supplied” advises scheme members of the foregoing commutation option at retirement. Given that the individual concerned took a lump sum on retirement and is now in receipt of a small monthly pension payment, it can only be assumed that he did not meet the necessary conditions to avail of the full commutation option at that time. Once pension benefits in the form of a pension or annuity have commenced to be paid there is no facility for an individual to seek to have the future stream of payments commuted.