Taxes Consolidation Act 1997 section 772

Conditions for approval of schemes and discretionary approval

Section 772 sets out the conditions under which the Revenue Commissioners must or may approve a retirement benefits scheme for tax purposes, and the circumstances in which approval may be withdrawn.

• A retirement benefits scheme must satisfy prescribed conditions relating to both the scheme itself and the benefits it provides before Revenue will grant approval; Revenue must approve any scheme that meets all of the prescribed conditions.
• The scheme conditions require it to be a bona fide arrangement for relevant benefits, recognised by both employer and employees, with the employer contributing to it and with employee contributions being non-refundable.
• The benefit conditions impose maximum limits on retirement pensions, death-in-service benefits, lump sums, and pensions payable to survivors, and generally prohibit the surrender or assignment of pensions except for permitted lump sum commutation on retirement.
• Revenue may at their discretion approve a scheme that does not satisfy all prescribed conditions, but may withdraw approval at any time if the facts no longer warrant it, and any alteration to an approved scheme requires separate Revenue approval.