Distribution Calculations 2026

Hello and welcome to this session for Standard Life's distribution calculations payun for 2026. My name is Sarah Murray and I'm a payroll specialist here at Standard Life. The customer payroll team are responsible for looking after our clients distribution liability for 2026 and ensuring that all taxes are correctly submitted to the revenue. This session is a quick overview to tell you what we do and how it all works. We are heading into the busy period for our vested PRSA clients and so we want to use this opportunity to remind everyone of the key dates and details. Overall, this shouldn't take longer than 15 minutes and I hope that you take some useful information from it.

So, just to go through the topics that we will cover here today. Firstly, I'll give a general overview of what distribution means and the tax liability that the revenue will be looking for. There will be information about the nominee QFM process that's qualifying fund manager and appointing one to look after a client's distribution liability. There will be a little information on the impute taxon option whereby a client doesn't take a withdrawal but does pay the tax due. I'll also go through the important dates to remember when it comes to standard life's December payuns. We will cover setting up a regular withdrawal and setting up bank details and your client's policy with effect from the 30th of April this year. Standard life stopped issuing check payments. Electronic fund transfer EFT and also known as direct credit or bank transfer is the method available for withdrawal payments. Our last topics will be some information on how a client can allocate cuto offs and credits to their standard life income before their first withdrawal and how we apply this information in calculating their payments and a reminder of changes to PRSI in 2026.

So a general overview of our distribution calculations. You may be aware of these already, but a refresher can always be good. Annually, a client must withdraw a certain percentage from their ARF and or vested PRSA fund. The withdrawal is based on the fund value of all ARF vested PRSA policies as at the 30th of November and a percentage based on the client's age or the client's fund value. To comply with this revenue obligation, we run a standalone payun every December. Some clients have a regular monthly or quarterly or halfyearly or yearly withdrawal setup and some clients take ad hoc withdrawals from their RF vested PRSA policy. Withdrawals taken throughout the tax year are included in the calculation of the value liable to tax for clients aged between 60 and 70. and if 60 it must be for the full year then 4% of their fund value is liable for tax. If a client is aged over 70 again age 70 for the full year then 5% of their fund value is liable for tax. When I say they must be 60 or 70 for the full year, it effectively means that a person born on the 1st of January and is 60 this year will be liable for distribution as they are 60 for the full year. But a person born on the 2nd of January and is 60 this year will not be liable for distribution as they aren't 60 for the full year. For any clients that have RF vested PRSA assets worth over 2 million, 6% of their fund value is liable to tax for distribution. This is also where nominee QFMs come into play and I'll talk more about that later. If a client has multiple AR vested PRSA policies with us, their fund value for the purposes of calculating the four, five or 6% liability to tax is their total standard life RF and vested PRSA portfolio. Any distribution due will be deducted proportionately across their policies. The deduction is divided based on the percentage of the total portfolio value each policy contains.

The nominee QFM process. As we said before, if a client has RF vested PRSA funds with a portfolio of over 2 million, then a QFM must be nominated to manage their entire portfolio and ensure that the 6% liability is met for Standard Life. If you want standard life to be a nominee QFM for a client, then you must apply to us. We require a written request if the customer wants us to be their nominee QFM. Then if approved, we will be in contact with you to get the relevant information. I believe some communications have already begun for clients where we are already the nominated QFM. We will also contact you if another company has been nominated as QFM. In these cases, we will provide a valuation of the client's standard life portfolio as at the 30th of November 2026, which is the important set valuation date and also a statement of all withdrawals for 2026 so that the other office can calculate the distribution liability in total. You can contact us at arf_payrollstandardlife.ie

E if you want to ensure that we have the correct information regarding the nominee QFM status of a client or indeed if you do want us to if you do want to apply to us to request that standard life be the nominee QFM.

Next is what we call the impute taxon option. It's just a little information because some clients do request this each year and we want to make sure that they are fully aware of what it means and the potential tax consequences. There can be a double taxation effect in if this is requested. So what happens if this is requested? We consider four, five or six% of the client's fund as applicable and whatever tax would be due on that amount, we will submit those taxes to the revenue and that's all we pay just the tax. The net amount instead of going to the client stays in the policy. So to the double taxation effect, say the client subsequently requests a surrender of their policy, they will be taxed again on that amount in the fund that would have originally that they would have originally received at the time of imputed distribution. Remember they didn't take the net pay at that time. I hope that makes sense. It's important that you're aware of this double taxation effect. We do require a written instruction from the client if they do wish to avail of this option. Some clients that have chosen this option in the past maybe haven't fully understood the impact. It's an option that should be considered very carefully due to the potential double taxation effect.

So the important dates to note around distribution, the first date is Friday the 27th of November. This is the deadline date for all ad hoc withdrawal instructions for 2026. So if a client has a particular request or instruction for payment that they want to send into us, if that's with us by the 27th of November, it means we will be able to action it in December this year. As always, that will be assuming all the necessary information is received. We seek these instructions as early as you can get them to us with the 27th of November as the deadline. We have what we call our main run. That's our main monthly payroll which goes out before our distribution liability payroll. The main run for regular withdrawals is Friday the 11th of December. So payments leave our bank account on Friday on Friday the 11th of December and should arrive in client bank accounts shortly after that. This payun pays out clients regular incomes which are already set up along with any ad hoc withdrawals processed. Once we go past the 11th of December, we start our distribution payun. Meaning that for any distribution calculations that produce a liability payment will be issued from our account on the 21st of December and again and again will arrive in client bank accounts shortly after that. That covers the key dates to remember. So Friday the 27th of November in particular. If you can get any specific withdrawal instructions into us by that date, it will ensure that the client receives payment in time for Christmas.

Here we have some information on setting up a regular withdrawal and a client's RF vested PRSA policy. A regular withdrawal can be set up to be paid monthly, quarterly, halfearly, or yearly. A client can also take ad hoc withdrawals throughout the year. If a client of yours would like to set up a regular withdrawal, please contact us at arf_payroll at standardlife.ie and we'll let you know the requirements. All withdrawals taken throughout the tax year are included in the calculation of clients distribution liability in December. Here we have some points on setting up bank details on your client's policy. As I said earlier, with effect from the 30th of April this year, Standard Life stopped issuing check payments. Electronic funds transfer EFT and also known as direct credit or bank transfer is the pay method available for withdrawal payments. To set up a bank transfer payment, you simply forward a copy of a recent bank statement and will add the bank details to the client's policy. By recent, we mean a statement within the last 6 months. If your client wishes to make a withdrawal and is not set up for bank transfer payment, we will be unable to process their request until we receive a valid bank statement confirming the account details for payment. If your client is due a distribution payment and is not set up for bank transfer payment, we will process the distribution, deduct any tax due to the revenue and retain the net proceeds on your client's account until a valid bank statement is provided. Once the required bank statement is received, the net amount will be paid to their nominated bank account.

Just a little information on new clients. If they wish to assign cuto offs and credits to their standard life income in advance of their first withdrawal as their pension provider, we must first register their pension with the revenue and then the client can complete the allocation of tax cut offs and credits to their standard life income. An email can be sent to us at arf_payrollstandardlife.ie

requesting that we register a client on our payroll. Once the registration is complete, the client can then if they wish change their tax basis and allocation of cut offs and credits to their standard life income. The revenue will then issue standard life with an OPN containing this information. RPN stands for revenue payroll notification and it is the employer's or pension provider's version of a client's tax certificate. If the client has any queries regarding their tax situation, they can contact the revenues jobs and pensions help helpline at the number shown on the slide. It is important to note that a client must be already registered for PIE purposes before an RPN can be issued to standard life.

Here's a reminder of the PAE modernization regime introduced by the revenue in 2019. Clients now look after their taxes online at www.revenue.ie.

There they'll find the my account page where they can review the tax credit allocation to their standard life income. The client can allocate cuto offs and credits using our tax registration number for our vested PRSA payments 3586780H

and that number is shown on the slide. We use a client's latest RPN to tax their payment. In line with revenues guidelines, we are obliged to operate the latest RPN available. As part of our payroll process, we download the OPN's via the revenues website when running our payroll. And again, we use this to calculate the client's tax liability. So, when we submit our payroll to the revenue, that's what we use, the latest 4PN available from the revenue. On the day we pay a client, their payment can be viewed on the revenues my account page. Payments made to clients are submitted to the revenue in real time through a payroll submission. We are obliged to send the payroll submission to the revenue on or before payday. That means on the day we pay our clients, the revenue will already have received that information. Any payments that don't go through by the end of 2026 will be paid in January 2027. So again to remind you that the deadline date for payment instruction is Friday the 27th of November. Payment instructions received after Friday the 27th of November will be made in January 2027. There is no option to backdate payments to the 2026 payroll for tax purposes.

And our last topic, an ARF or vested PRSA withdrawal is treated as investment income and is subject to PRSI class S. Clients aged between 66 and 70 and born after the 1st of January 1958 will continue to be liable for PRSI class S until such time as they are awarded the state pension contributory or reach age 70 whichever is earliest. Once a client is awarded the state pension contributory, the revenue will notify us through their ORPN and we'll update their PRSI class PRSI to class M, which is a nil contribution. The Department of Social Protection changed the class SSI rate from 4.2% to 4.35% on the 1st of October 2026. If a client has any queries regarding their PRSA contributions, they can contact the Department of Social Protection at the number shown on the slide.

So that concludes this SE session. If you have any questions, please do email us at arf_payrollstandardlife.ie.

The arf_payrollstandardlife.ie IE email address is also where you can send scanned copies of your client's signed payment instructions, bank details, nominee QFM information, and anything further that we've discussed here today. We have created a two-page document which summarizes the details we went through here today, and you'll find that on our advisor site.

Thank you for joining me today. I hope you enjoyed it and found this information useful. So, thanks again and here's to a successful distribution 2026.