QROPS picture still murky
It may be several more weeks before it becomes clear how tough new regulations on UK pension transfers have affected New Zealand’s QROPS market.
Tuesday, April 17th 2012, 6:49AM 4 Comments
by Niko Kloeten
QROPS (Qualifying Recognised Overseas Pension Schemes) allow the transfer of tax-advantaged UK pension funds to approved providers in other countries, for expat Brits who want to move their funds with them to their new home.
On April 6 new rules specifically targeting New Zealand QROPS providers kicked in, requiring those who transfer to a New Zealand provider after that date to hold 70% of the transferred amount as an “income for life”, with only 30% allowed to be withdrawn at the age of eligibility.
As reported by Good Returns, this left providers in a tough position due to New Zealand law making it difficult to make such changes to their trust deeds.
The UK tax department, HMRC, has released a revised list of QROPS providers, which appears to show the number of listed New Zealand providers has fallen from about 50 before the changes to just over 20.
However, QROPS adviser David Milner said it would be a while before an accurate picture of the new shape of New Zealand’s QROPS market could be drawn.
“It appears that all non-Kiwi Saver schemes have been temporarily removed from the QROPS list (an updated list will be published towards the end of the month) - but there are valid reasons why schemes are not on the list at the moment:
- The Scheme Manager has notified HMRC the Scheme no longer qualifies as a QROPS under the new regulations and has requested delisting
- The Scheme Manager has not yet advised HMRC that the Scheme’s trust deed has been amended to accommodate the new regulations
- Neither of the above, and the Scheme Manager is awaiting HMRC’s review of the Scheme’s rules to see if they still qualify.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
« KiwiSavers unaware of scheme changes | Managers warn against more KiwiSaver regulation » |
Special Offers
Comments from our readers
You need to contact QROPS Specialists who can help in that area. You need to see if your present company can release your pension penalty free. If so, you can move to a Malta QROPS. QROPS prior to April 6th, 2012 should be protected under the old rules. It sounds like perhaps your QROPS was not transferred in time or perhaps they will only release the 30% as a lump sum and the rest will have to provide an income for life. You need to ask Super Life to clarify the situation.
The advisers are no help at all they just say that Superlife are in talks with the HMRC so we will just have to wait. My opinion is that if Superlife can't fulfill the terms of the new rules (hence them being removed from the list) then they should honour the clients on the old regulations. It's disgusting that they can just ignore their clients in the way that they are now.
Commenting is closed
Printable version | Email to a friend |