The Minister for Finance Michael McGrath has started a targeted review of the Standard Fund Threshold (SFT) regime.
The Standard Fund Threshold (SFT) is the limit or ceiling on the total capital value of tax-relieved pension benefits that a person can draw down in his or her lifetime from all of their pension arrangements.
The SFT was introduced in December 2005 and currently stands at €2m.
The examination is being led by an independent expert, Dr Donal de Buitléir, with support from the Department of Finance.
The first step in the examination is a public consultation which opens shortly and runs until January 26, 2024.
Minister McGrath said the review will consider the impact of any change to the SFT on the overall tax expenditure associated with pension provision and its associated distribution, and the need for equity in treatment across taxpayer groups and between public and private sector workers.
"The SFT has remained unchanged since 2014 and it is timely to undertake an examination of it taking account of the Commission on Taxation's recommendation that it be set at "an appropriate and fair level of estimated retirement income," the Minister said.
"The public consultation will be an important opportunity for interested parties to express their views in relation to the operation of the SFT and put forward their proposals for any amendments," he said.
"I encourage all stakeholders to participate in the public consultation process," he added.
