QROPS rules put stop to mergers

It was reported last week that 12 members of Smartshares KiwiSaver face a tax bill of up to 55% if they move their money to the now NZX-owned SuperLife scheme.

NZX has written to Smartshares KiwiSaver members suggesting they transfer to the SuperLife KiwiSaver scheme, which it acquired this year.

But 12 will not be able to because they moved their money under the QROPS regime. KiwiSaver schemes no longer qualify for QROPS under new British pension rules introduced this year.

This means any transfer to a new scheme will count as an unauthorised withdrawal and could be subject to a bill of 40% of the transfer and 15% of the balance.