Dáil Éireann Debate, Thursday - 4 December 2025
235. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance the reason that since August 2025, a person on a defined benefit pension can no longer exercise a buy-out bond option if they are above the normal retirement age; and if he will make a statement on the matter. [68687/25]
View answerI am advised by Revenue that the “preserved benefits” – that is, pension benefits related to service in an employment - of a member of an occupational pension scheme, including a defined benefit scheme, may be transferred to an approved buy-out bond (BOB) if the transfer is permitted under section 34 of the Pensions Act 1990. An entitlement to a “preserved benefit” is provided for in section 28 of that Act. The interpretation of the Pensions Act is a matter for the Minister for Social Protection; however, it should be noted that a transfer of pension benefits is not permitted under that Act once payment of a “preserved benefit” has commenced.
I am further advised by Revenue that the change in August, mentioned by the Deputy, relates to an update to the Revenue Pensions Manual which was in response to requests for clarity from practitioners on certain matters, including the rules for transfers of benefits from an occupational pension scheme to a Personal Retirement Savings Account (PRSA). In light of additional queries, including this one, which have arisen, the Manual is being further updated to clarify the position on transfers of pension benefits from one occupational pension scheme to another scheme or to a BOB.
