Further Revenue changes for A-Day

In March the Revenue announced consultation to discuss how pension commencement lump sums should be calculated from schemes providing pensions from money purchase arrangements. Following meetings with various representative bodies, the government proposes to introduce legislation in the 2006 Finance Bill to change the calculation of such pension commencement lump sums. Under new legislation, to be implemented from 6 April 2006, where a scheme pension is provided from a money purchase arrangement the pension commencement lump sum will be calculated as 25% of the funds used to provide the...