As a result of a recent Pensions Manual update, Revenue will now allow the Social Welfare Christmas bonus, if payable, to be classified as guaranteed income. For clients with an AMRF who have reached state pension age and received a Christmas bonus in 2017, it may mean that their guaranteed income is now €12,700 or more and their AMRF may be converted to an ARF (Approved Retirement Fund).
If your guaranteed income is below €12,700 but the addition of a Christmas Bonus, payable, brings your guaranteed income over this amount then you may convert your AMRF to an ARF. Revenue will also allow the Living Alone allowance and payments for a qualifying adult dependent to be classified as guaranteed income. Like the Christmas bonus, the use of these payments is optional.
We will be reviewing this in more detail in early 2019.