The Changes

Amongst the key points to the proposed QROPS legislation changes is the requirement for New Zealand schemes, looking to receive UK pension transfers, to ensure that their scheme will provide at least 70% ‘income for life’ from the UK transferred fund.

In addition, the current trustee ‘reporting period’ to HMRC for benefits paid from all QROPS, will be extended from 5 years of non-UK residency to 10 years after the member transfers out of a UK registered pension scheme.
It is these major changes to the QROPS rules that will mean UK pension members, who have been outside of the UK for more than 5 complete UK tax years, will no longer have the option to transfer their UK pensions (after 6th April 2012) to a New Zealand QROPS and receive 100% of their funds, as a lump sum, immediately.
Opportunities pre 5th April 2012

• If you have already been outside of the UK, for more than 5 complete UK tax years, AND
• Wish to receive greater than 25% of your UK pension as a lump sum, please contact Global QROPS immediately.

There is a limited time period between now and 5th April 2012 to transfer UK pension benefits to New Zealand and receive these benefits as a lump sum.

Please call +44 (0) 1372 724249 of email info@globalqrops.com for more information.

Last Opportunity for New Zealand QROPS is a post from: Global Qrops

For those UK migrants living in Australia many of them would have UK pension benefits held in the UK. Should a UK expat pension member in Australia transfer their UK pensions to Australia?

Whether a UK pension transfer to Australia is a good idea or not is a big issue, not just for a UK expat pension member but also for a returning Australian that has returned to Australia after a period of work in the UK.

The benefits from a UK pension scheme can vary. This is because historically the UK has a variety of pensions that provide different benefits. For example, a final salary (defined benefit) scheme is not a common type of scheme throughout the world. The benefits from this type of scheme depend on the years of service an individual has from their employer, their final remuneration and the scheme accrual rate. This is unlike an Australian scheme where benefits depend on the fund size at retirement – where there are no guarantees.

If you are a UK expat pension member of a final salary scheme how can you compare two totally different types of benefits, in two different countries, in order to decide whether a pension transfer to Australia would be advantageous or not?

The advisers at UK based IFAs Global QROPS Ltd have many years of experience advising on pension transfers to Australia from the UK and can make firm recommendations to UK expat pension members in Australia deliberating on what to do with their UK pensions.

UK Expat Pension Members in Australia is a post from: Global Qrops

Throughout New Zealand, there are many superannuation schemes that have been registered and approved by the UK’s Her Majesty’s Revenue and Customs (HMRC) as QROPS.

Each New Zealand QROPS would fall under the same tax legislation in New Zealand and also the same UK QROPS rules within the 5 year reporting period. However, each scheme would have their own sets of charges and costs.

Therefore, when you transfer a UK pension to New Zealand, how do you decide what to do and which QROPS to use?

The key strategy would be to get suitable advice for your UK pension before you leave the UK – preferably from a specialist in UK pension transfers to New Zealand. Once you have spoken to a specialist adviser, regarding your retirement plans and goals, it would become clearer as to which is the most suitable QROPS.

Although you are migrating to New Zealand, you may wish to look at QROPS in other jurisdictions as well. Remember, HMRC allows UK pension transfers to QROPS in countries other than the one you are migrating too. Should you settle for a QROPS in New Zealand, however, then the entry charges, annual management costs and exit penalties of each scheme should all be considered.

UK Pension Transfers to a New Zealand QROPS is a post from: Global Qrops

In the long term the cost of not considering your options with your UK pension could be higher than taking the advice. Many people know someone who has already migrated and their advice from them may be ‘wait until you get there’ or  ‘I didn’t need advice, I just got my employer to transfer my UK pension to Australia (or New Zealand)’. However, this in itself is advice and not necessarily well conceived advice. You would have to ask yourself, did your friend do the right thing in the first place? Did they migrate on the same visa as you (as this affects your tax status)? Are the pension fund sizes identical – as yours could be affected by the Australian cap whereas your friend’s fund was not affected? What exchange rate did the funds transfer over on? Does your Australian employer have a scheme capable of taking UK pension transfers in? ie is it a QROPS?

Sweeping aside the issue of UK pension advice before you migrate to Australia or New Zealand could prove expensive if you are not fully aware of the tax or exchange rate issues.

Why do I need Advice on a UK Pension Transfer to Australia or New Zealand? is a post from: Global Qrops