Taxes Consolidation Act 1997 section 787K

Revenue approval of PRSA products

Section 787K sets out the conditions that a personal retirement savings account (PRSA) product must satisfy in order to be approved by Revenue, and the discretionary grounds on which Revenue may approve a product that does not fully meet those conditions.

• A PRSA product must meet mandatory conditions relating to the provider, restrictions on annuity surrender or assignment, permitted benefit payments, minimum access age, death benefits, and the requirement for life annuities.
• Revenue may exercise discretion to approve a product that allows early access on grounds of permanent incapacity, retirement at age 50 or over, or in occupations where early retirement is customary.
• Approval is not prejudiced by provisions allowing discharge of chargeable excess tax, encashment of PRSA rights, exercise of the AVC pre-retirement access option, or deemed vesting at age 75.
• Where Revenue form the opinion that approval should be withdrawn, they must notify the Pensions Authority in writing, and any necessary assessments may be made to claw back relief previously given.