Taxes Consolidation Act 1997 section 787O

Interpretation and general (Chapter 2C)

Section 787O is the interpretation and general section for Chapter 2C, which imposes limits on tax-relieved pension funds, and for the associated Schedule 23B.

• Defines key terms used throughout Chapter 2C and Schedule 23B, including "standard fund threshold", "personal fund threshold", "benefit crystallisation event", "relevant pension arrangement", "chargeable excess" and related concepts.
• Sets out the standard fund threshold at €2,000,000 for the years 2014 to 2025, rising in stages to €2,800,000 by 2029 and thereafter indexed to average weekly earnings growth.
• Provides for a personal fund threshold for individuals whose pension rights on 1 January 2014 exceeded the standard fund threshold, and sets out the relevant valuation factors used to capitalise defined benefit pension rights.
• Requires pension adjustment orders to be disregarded when calculating the capital value of pension rights for both personal fund threshold and benefit crystallisation event purposes, so that the full value of the pension (including any portion designated to a former spouse or civil partner) is attributed to the member.