782A Preretirement access to AVCs.
(1) (a) In this section—
“accumulated value”, in relation to relevant AVC contributions, means—
(i) where the contributions are contributions of a kind referred to in paragraph (i) of the definition of “relevant AVC contributions”, the amount which the administrator determines to be equal to the realisable value of the portion of the resources of the scheme that, in accordance with the rules of the scheme, represents those contributions, less the amount of so much of the expenses of the scheme as, under the rules of the scheme, are to be discharged out of that portion, and
(ii) where the contributions are contributions of a kind referred to in paragraph (ii) of the definition of “relevant AVC contributions”, the amount which the PRSA administrator determines to be equal to the realisable value of the resources of the PRSA contract that, in accordance with the terms of the contract, represents those contributions, less the amount of the expenses of the contract as, under the terms of the contract, are to be discharged out of the realisable value;
“administrator”, in relation to an AVC fund, means the person or persons having the management of the scheme to which the relevant AVC contributions comprising the AVC fund have been made or, as the case may be, the PRSA administrator;
“AVC fund” means the accumulated value of relevant AVC contributions made by a member, other than the accumulated value of relevant AVC contributions of a kind referred to in paragraph (ii) of the definition of that term where benefits have become payable to the member under the main scheme;
“designated benefit” and “pension adjustment order” have the meanings assigned to them in section 787O(5)(a);
“member”, in relation to a scheme, means any person who, having been admitted to membership under the rules of the scheme, remains entitled to any benefit under the scheme;
“PRSA administrator” has the meaning assigned to it in section 787A(1);
“relevant AVC contributions” means—
(i) additional voluntary contributions within the meaning of section 770(1), and
(ii) additional voluntary PRSA contributions within the meaning of section 787A(1),
made for the purpose of providing relevant benefits on retirement and include such additional voluntary contributions representing a transfer of additional voluntary contributions from a retirement benefits scheme or a PRSA, as the case may be, but shall not include such additional voluntary contributions made under a purchase of notional service scheme;
“relevant individual” means a member of a scheme who has an AVC fund and, as the case may be, where the AVC fund is subject to a pension adjustment order includes the spouse or former spouse or civil partner or former civil partner of the member;
“scheme” means an approved scheme or a statutory scheme;
“specified period” means the period of 3 years from the date of passing of the Finance Act 2013.
(b) For the purposes of this section, where an AVC fund is subject to a pension adjustment order, each relevant individual shall be deemed to have a separate AVC fund the value of which shall be determined as if the designated benefit pursuant to the order was payable at the time of the transfer provided for in subsection (3).
(c) For the purposes of this section, relevant AVC contributions shall not include—
(i) any sum paid by means of contribution, howsoever described, at any time by an employer (within the meaning of section 787A) to a scheme or to a PRSA,
(ii) contributions (which are not voluntary contributions) made at any time by a member to a scheme at the rate or rates specified for member’s contributions in the rules of the scheme or otherwise, or
(iii) contributions (which are not additional voluntary contributions of a kind referred to in subparagraph (ii) of the definition of “relevant AVC contributions”) made at any time by a member to a PRSA.
(2) Notwithstanding section 32 of the Pensions Act 1990 or the provisions of a pension adjustment order made in relation to a relevant individual, a relevant individual may during the specified period irrevocably instruct in writing the administrator of his or her AVC fund to exercise, on one occasion only, the option (in this section referred to as the “pre-retirement access option”) provided for in subsection (3).
(3) The pre-retirement access option is the transfer by the administrator to the relevant individual, before retirement, of an amount not exceeding 30 per cent of the value, at the time of the transfer, of the relevant individual’s AVC fund.
(4) (a) The amount transferred by an administrator to a relevant individual in accordance with subsection (3) shall, notwithstanding section 780, be treated as a payment to the individual of emoluments to which Schedule E applies and accordingly the provisions of Chapter 4 of Part 42 shall apply to any such payment, and
(b) the administrator shall deduct tax from the amount transferred at the higher rate for the year of assessment in which the payment is made unless the administrator has received from the Revenue Commissioners a certificate of tax credits and standard rate cut-off point or a tax deduction card for that year in respect of the individual.
(5) Where an administrator receives an irrevocable instruction referred to in subsection (2) the administrator shall keep and retain for a period of 6 years each such instruction and on being so required by notice given to the administrator in writing by an officer of the Revenue Commissioners make available within the time specified in the notice such instructions as may be required by the notice.
(6) Where a pre-retirement access option is exercised in respect of a relevant individual in accordance with subsection (3) the amount transferred shall not be a benefit crystallisation event (within the meaning of section 787O(1)) for the purposes of Chapter 2C and Schedule 23B.