Taxes Consolidation Act 1997 section 782A

Pre-retirement access to AVCs

Section 782A provided a three-year window, from 27 March 2013 to 26 March 2016, during which members of occupational pension schemes could draw down up to 30% of the accumulated value of their additional voluntary contributions (AVCs) before retirement.

• Members of approved or statutory schemes (including those with deferred benefits) could make an irrevocable written instruction to the scheme administrator to transfer up to 30% of the accumulated value of their AVC fund, on a once-off basis, before retirement.
• Qualifying AVCs were limited to voluntary contributions made for retirement benefit purposes — employer contributions, main scheme employee contributions, ordinary PRSA contributions, and contributions to purchase notional service were all excluded.
• Where an AVC fund was subject to a pension adjustment order, both the scheme member and the spouse or civil partner (or former spouse or civil partner) could exercise the option independently in respect of their respective share of the fund.
• The amount transferred was taxed under PAYE as Schedule E emoluments, with the administrator required to deduct tax at the higher rate unless a certificate of tax credits and standard rate cut-off point had been received from Revenue — the payments were not subject to USC or PRSI, and did not constitute a benefit crystallisation event.