Anyone successfully executed pension portability from UK Civil Service to a US Plan?
#1
Anyone successfully executed pension portability from UK Civil Service to a US Plan?
Hello!
First time reader and first posting!
I came here wondering if anyone has successfully executed "pension portability" from UK Civil Service to a US Plan? I have a PCSPS (Principal Civil Service Pension Scheme) balance. I've lived in the US for many decades and am now a citizen with no plans to return. I'd like to move the PCSPS defined benefit balance from the UK to a US defined contribution plan like a pre-tax IRA Rollover account or similar.
Any advice?
Thanks!
PS I did search here a elsewhere and found UK State Pension Info : British Expat Wiki , but what I want to do is move the balance in its entirity before the pay-out date.
First time reader and first posting!
I came here wondering if anyone has successfully executed "pension portability" from UK Civil Service to a US Plan? I have a PCSPS (Principal Civil Service Pension Scheme) balance. I've lived in the US for many decades and am now a citizen with no plans to return. I'd like to move the PCSPS defined benefit balance from the UK to a US defined contribution plan like a pre-tax IRA Rollover account or similar.
Any advice?
Thanks!
PS I did search here a elsewhere and found UK State Pension Info : British Expat Wiki , but what I want to do is move the balance in its entirity before the pay-out date.
#2
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Can't be done.
As far as I know
Question comes up regularly.
As far as I know
Question comes up regularly.
Last edited by Hotscot; Aug 27th 2014 at 5:02 pm.
#3
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Agreed, and that's a good thing because, .....
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
#4
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Agreed, and that's a good thing because, .....
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
#5
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Agreed, and that's a good thing because, .....
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
#6
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Agreed, and that's a good thing because, .....
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
..... Anyone who wants to swap a defined benefit plan for a defined contribution plan should have their head examined. Sorry, no offence intended, but no competent professional advisor would ever recommend that as a sensible course of action.
#7
Account Closed
Joined: Mar 2004
Posts: 2
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
That depends.
$10 a week and with a family that dies early and they offer a big cash sum?
I did have a smallish pension and the lump sum did look attractive but I could not take it.
It is down to mathematics and how long you think you will live and how that corresponds to their actuarial basis.
$10 a week and with a family that dies early and they offer a big cash sum?
I did have a smallish pension and the lump sum did look attractive but I could not take it.
It is down to mathematics and how long you think you will live and how that corresponds to their actuarial basis.
#8
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Thanks!
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
Soooo, my follow up question takes a different tack, namely:
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
Soooo, my follow up question takes a different tack, namely:
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
Last edited by colin_w; Aug 27th 2014 at 8:51 pm. Reason: clarify
#9
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Thanks!
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
Soooo, my follow up question takes a different tack, namely:
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
Soooo, my follow up question takes a different tack, namely:
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
#10
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Thanks!
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
I would have naively thought that, if the cash-out value of a DB plan was equal to its true actuarial value, then DB versus DC would be a wash since one could use the DC to buy an (again, fairly priced) USD-denominated annuity of equal value as the original DB... but in any case, the point is moot because it seems such a transfer is in any case impossible...
Soooo, my follow up question takes a different tack, namely:
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
If I have an non-portable DB pension in the UK and no UK bank account, is it possible to instruct the payer (UK Govt Pay and Personnel Agency pensions in this case) to deposit the monthly payments (once due) in pounds sterling to a US bank (via a SWIFT code or whatever) and to have my bank do the currency conversion? Do I have to swallow the terrible conversion spread that banks sting you with? Any way to get a lower spread?
In other words, what options have folks used in my case?
Last edited by nun; Aug 27th 2014 at 10:15 pm.
#11
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Thanks! Does the UK payer require that I send them an IRS 6601 Residency Certificate every year in order to avoid being taxed at source? Or is the certification a one-time deal?
#12
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Notwithstanding the good advice above, US banks don't offer GBP accounts, other than offshore (with fees accordingly), and in fact were prohibited from offering non-USD a/cs in the US until a couple of years ago. To the best of my knowledge no US bank yet offers GBP a/cs in the US, and I doubt many ever will, given the costs of implementing a system for foreign currencies for what would be a niche service. In short, you couldn't receive a sum denominated in GBP in the US even if you wanted to.
Last edited by Pulaski; Aug 27th 2014 at 11:14 pm.
#13
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
you need to include an 8802 residency certificate. You should only need to apply once as this will change your HMRC tax code to NT.
#14
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
See here for more info regarding the procedure:
Form 6166 - Certification of U.S. Tax Residency
#15
Re: Anyone successfully executed pension portability from UK Civil Service to a US Pl
Notwithstanding the good advice above, US banks don't offer GBP accounts, other than offshore (with fees accordingly), and in fact were prohibited from offering non-USD a/cs in the US until a couple of years ago. To the best of my knowledge no US bank yet offers GBP a/cs in the US, and I doubt many ever will, given the costs of implementing a system for foreign currencies for what would be a niche service. In short, you couldn't receive a sum denominated in GBP in the US even if you wanted to.