Joe Costello (Dublin Central, Labour)
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91. To ask the Minister for Finance if he will consider maintaining Approved Retirement Fund limits at current levels of income, that is €12,700 income with €63,500 investment, or if he will be proceeding with the proposed increase in limits in March 2016 to an increased level of income of €18,000 and an increased investment of €119,800; and if he will make a statement on the matter. [25553/15]

Michael Noonan (Limerick City, Fine Gael)
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In Finance Act 2013, I rescinded the Finance Act 2011 changes to the specified or guaranteed pension income requirement for Approved Retirement Fund access which had increased that income requirement from €12,700 to a variable limit based on 1.5 times the State Pension (Contributory) which amounted to €18,000 per annum. At the same time, I also rescinded the Finance Act 2011 change which increased the maximum set aside amount required to be invested in an Approved Minimum Retirement Fund (AMRF) from €63,500 of the remaining pension fund (after taking the permissible tax-free lump sum) to a variable amount equal to 10 times the annual State Pension (Contributory) rounded to the nearest €100 which amounted to €119,800 or the remainder of the pension fund if less than this increased amount. Investment in an AMRF is a requirement for individuals with Defined Contribution pension arrangements who do not meet the specified income requirement and choose not to purchase an annuity.

I re-introduced the original specified income requirement and maximum AMRF set-aside amount on the grounds, among other reasons, that without an appropriate transition period the 2011 Finance Act changes would detrimentally affect the plans of many individuals preparing for retirement over the medium term. The intention at the time of Finance Act 2013 was that the 2011 changes would be re-introduced in 2016.

This matter is being examined in the context of the preparations for Finance Bill 2015 taking account of developments since 2013 and the current situation. I will bear in mind the Deputy's request to maintain the current requirements in that context.