Revenue Letter Scheme Approvals Summary
Wed Jan 8 2020
Brokers Ireland met with Revenue on the 16th of December 2019 to discuss the backlog of scheme approvals.
Revenue noted at the meeting while there had been a 100% increase in applications, another key factor contributing to the delay is the accuracy of the information they are receiving.
Please find below some of the re-occurring factors that may attribute to a delay when getting a scheme approved:
- Failure to include the details of retained benefits.
- Putting incorrect details on approvals such as salary details or incorrect normal age of retirement on application.
- Members not being registered as an employee of the sponsoring employer.
- Employment commenced later than stated on the application form.
- Incorrect PPS number.
- Scheme commencement date in application earlier than the employment commencement date.
- Employment commencement date earlier than date the sponsoring company started trading.
Revenue and Insurance Ireland have agreed that once applications have been registered with the pension’s authority, contributions to the proposed scheme may commence. If Revenue approval has not been received by six months from the date of the application, the contributions must be returned to the employer/member and a new application must be submitted.
When a transfer from a Revenue approved executive pension, arrangement is requested by the member, it may only take place once the application for Revenue approval has been submitted. In the unlikely event of Revenue approval not being received, the transferred fund must be returned from where it came from or be transferred into a personal retirement bond.
If there are any urgent cases such as the imminent retirement of members, Revenue will prioritise the applications when requested to do so by the life offices. It has been agreed between Revenue and Brokers Ireland to meet again in Q1 of 2020 to discuss the progress of scheme approvals.