Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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186. To ask the Minister for Finance the way in which a person (details supplied) can obtain a greater annuity from their PRSA; and if he will make a statement on the matter. [5993/17]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by Revenue that section 787G of the Taxes Consolidation Act 1997, permits a holder of a Personal Retirement Savings Account (PRSA) to transfer his/her PRSA to a Revenue approved occupational pension scheme. Where such a transfer occurs the assets transferred become subject to the rules of the occupational pension into which they are transferred. The receiving occupational pension scheme can be a defined benefit scheme or a defined contribution scheme.

In the particular case referred to in this parliamentary question the PRSA assets were transferred to the holder's defined benefit occupational pension scheme. At retirement the individual concerned received the maximum tax free lump sum in accordance with pension tax legislation and the rules of the scheme. The only option available under pension tax legislation with regard to the remaining balance (that is, the amount over and above the tax free lump sum) is to purchase an open market annuity. It is not permissible under pension tax legislation to invest funds from defined benefit pension schemes in an Approved Retirement Fund (ARF) or an Approved Minimum Retirement Fund (AMRF). It is also not permissible under the legislation to take the remaining balance in a defined benefit scheme as a taxable lump sum.

I am informed by Revenue that this information was provided to the individual concerned in correspondence in April and December 2016.