For transfers to another EU Member State, the overseas scheme must be operated or managed by an Institution for Occupational Retirement Provision (IORPS) and must be established in a Member State of the European Communities which has implemented the IORPS Directive in its national law. If the transfer is to a country outside the EU, a transfer may not be made to a country other than the one in which the member is currently employed.
Transfers that comply can be made without prior Revenue approval, but details of the transfer must be sent to the Revenue before the transfer payment is made. The amount that can be taken as a lump sum should be notified to the receiving scheme.
- If the money is in an Occupational pension scheme, a transfer may be possible to a IORPS scheme.
- If the money is in a PRSA, a transfer may be possible to a IORPS scheme but it may trigger a tax liability.
- If benefits are in a Buy Out Bond, a transfer is not possible and you can only transfer these benefits to the UK.
It is very important for non-nationals who intend to leave Ireland at retirement to take care with the decision that they make with regards to their pension before leaving Ireland.