The Finance Bill 2013 proposes to reduce the maximum allowable pension on retirement (known as the Standard Fund Threshold (SFT)) from €2.3 million to €2 million with effect from 1 January 2014. Those individuals who have pension rights in excess of €2 million (but less than €2.3 million) can protect their accrued higher capital by submitting a claim for a Personal Fund Threshold (PFT) to the Revenue Commissioners.
In the past the PFT application procedure was paper based. However a new electronic based application process is being developed by Revenue and is expected to be introduced early next year. The time limit for making a PFT application will be 12 months after the date on which the electronic system is made available.