771 Meaning of “retirement benefits scheme”

(1) The term “retirement benefits scheme” means a scheme for the provision of relevant benefits but expressly excludes any scheme under the Social Welfare Consolidation Act 2005. [The term “relevant benefits” is defined in detail in section 770 and includes any pension, lump sum or gratuity on retirement or death.]

(2) References to a “scheme” include references to a contract, deed, agreement, series of agreements or any other arrangements. In other words, any retirement benefit arrangements, whether formal or informal, is within the scope of the legislation. The word “contract” is included to put beyond doubt that a contract based scheme, which is the structure most likely to be used in other EU Member States, comes within the provisions of Chapter 1. A “scheme” exists even though it caters for only a small number of employees or even a single employee. In addition, where a pension is given to an employee to start immediately on the making of the arrangements, the arrangements will constitute a “scheme”.

(3) The Revenue Commissioners may treat a retirement benefits scheme which caters for 2 or more different categories of employees as separate schemes catering for the respective categories of employees.

Relevant Date: Finance Act 2021