Which of the following counts against an individual's remaining Standard Fund Threshold amount?

• A. Retaining a PRSA beyond age 75, without taking any benefits from it
• B. Transfer of funds from one ARF to another ARF
• C. Growth in the value of an ARF since its establishment from €1 million to €1.4 million
• D. Payment of a transfer value from a Retirement Annuity Contract to a PRSA

Answer: (A)

The question tests how the Standard Fund Threshold (SFT) is affected by certain pension fund activities. The SFT is the limit on the amount you can keep in standard funds (like PRSAs, ARFs, and related contracts) that still benefits from the standard tax treatment. After age 75, unused funds kept in these standard vehicles can reduce the amount left within the threshold for other funds.

Retaining a PRSA beyond age 75 without taking any benefits uses up part of that threshold because the money remains in a standard fund and isn’t being crystallised into an annuity or drawn down. In that sense, it “counts against” the remaining SFT.

Transferring funds from one ARF to another ARF (B) or transferring value from a Retirement Annuity Contract to a PRSA (D) are transfers within the standard-fund framework and don’t reduce the remaining SFT in the same way. Growth in the value of an ARF (C) represents a change in value, not a crystallisation or withdrawal event, so it doesn’t count against the SFT by itself.

So the act that reduces the remaining Standard Fund Threshold amount is keeping a PRSA beyond age 75 without taking benefits.