Thousands of Irish pension holders must act quickly to review their pension before major changes come into effect next month under the IORP II directive.

The 22nd April deadline affects those with executive pensions such as Small Self-Administered Pensions (SSAPs). These pensions have been, until now, a flexible and tax-efficient way to save for retirement.

They have been particularly popular among high earners, such as directors, senior officials, consultants, contractors and landlords.

But those with certain executive pensions now risk losing their tax benefits or even having their pension wound up under the new regulation unless they take action.

Steps to Take Before April Deadline

If you currently have an executive pension and think you may be affected by IORP II, these are the steps you should take:

  • Understand your pension scheme – Check whether your plan falls under IORP II and how you might be affected. Knowing this as soon as possible helps you avoid unexpected losses.

  • Consult expert advice – Speak with a qualified financial advisor who can guide you on what you need to do to transfer or restructure your pension in the most tax-efficient way possible. You can do this by clicking the button below.

  • Act promptly and keep documents – The 22nd April 2026 compliance cut-off date for compliance is set in stone. Take action quickly and keep documents related to contributions, employer inputs and communications with your pension provider.

What is IORP II?

IORP stands for Institutions for Occupational Retirement Provision. It is an EU framework which regulates occupational pension schemes. It is designed to ensure that pension schemes are stable, well-governed and transparent across the EU’s 27 member states. 

It was introduced in 2021 with a five-year derogation put in place which allowed the pension schemes to operate as before, but this period comes to an end on 22nd April 2026.

In practice, IORP II means stricter rules and compliance standards for executive pension schemes such as SSAPs.

Alternative Pension Options

If your current pension doesn’t comply with IORP II, you might wish to explore other options.

Among the alternative options is a Personal Retirement Savings Account (PRSA). These individual pensions remain tax-efficient but there is a €115,000 earnings limit which applies to personal contributions for tax relief.

Master trusts are also becoming more popular. Ireland has 17 master trusts, managing over €35 million in assets. These are defined benefit, multi-member pension schemes and are compliant with the new IORP II regulations.

And finally, Approved Retirement Funds (ARFs) offer flexibility at retirement, allowing for withdrawals while your funds remain invested. 

However, ARFs are inactive for further contributions, which means that careful planning is needed to make them work for your retirement goals.

Ready to take the next step?

Speak to a qualified financial advisor today to discuss your options regarding PRSAs, to reduce your tax burden & boost your retirement income.

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