jumbo

I have a job lined up when I move to Oz which should pay super.

Can I set up another Super scheme at the same time to transfer my UK pension into?

bondipom

Your work will set up a Super Scheme which they will pay into. You do not get a choice of scheme. They will pay 9% of the value of your super into the scheme. Say your Salary is $50,000 you will get $50,000 gross of tax and an extra $4,500 will be paid into your super.

You can transfer UK pensions to this fund however the appropriatness of doing this depends on the type of fund you have in the UK and how long there is to maturation.

OzTennis

Good stuff BP. There was also a thread earlier in the week about pension transfer from NHS to Oz. Some were suggesting it is worth a £350 fee to get an expert to check out whether or not it is worthwhile transferring your fund or leaving it in the UK. The firm someone recommended (and their 2 main advisors were University of Melbourne graduates based in the UK with experience of pensions and 'super') was:

http://www.xpatconsulting.com/

OzTennis

jumbo

Thanks bondipom

Does this mean that I can't set up a second Super scheme of my choice (alongside my employers) to make the UK pension transfer?

bondipom

You can set up another scheme. There are conditions on the types of scheme that you can transfer your UK pension fund into. I am not sure but I think one of those conditions must be that your current employer must be paying into the scheme. It is frustrating especially when some schemes charge rediculous fees.

Alan Collett is the qualified member to properly answer your question.

gld

This is a statement of fact, I will use myself as an example.

Employer does not have to contribute.

Qualification requirements are as follows:

You must in the UK be FSA regulated and be recorded as a pension specialist - easy to check who is and who is not. There are just I think somewhere in the region of 1800 of us who have G60 qualification - the industry benchmark.

In Australia you have to be regulated by the Australian authorities - we are not. I am though dual qualified there is a difference. Hence why we work with those who are regulated in Australia. Nobody is dual regulated as far as we know, it would be a nightmare because you can only advise when present in the jurisdiction you are physically in. Being dual qualified is different to dual regulated. Trying to be tax qualified and pension qualified and then effectively resident in two countries would mean that you would never be able to see a client - so nobody in practical terms has a mortgage on the advice or knowledge, because they cannot be in two places at once! This is why advisors and accountants in UK work with advisors and accountants in Australia who understand the issues.

We therefore ourselves manage this by working with qualified advisors and accountants in Australia who WILL only work with with suitably qualified UK advisors and accountants, who understand the Australian system and we work with them because they understand the UK system. In other words its professionally registered advisors in one country working with similarly registered in the other, but not any old advisor.

This is not an advert but what we believe provides the maximum level of consumer protection possible - this is all due to UK regulators and Australian regulators not having jurisdiction over each others financial systems.

I hope this clarifies how advice can be given, i.e. a UK advisor cannot advise in Australia unless he is regulated there and an Australian advisor cannot advise in UK unless he is regulated in the UK. The practical problems that creates means advice which is complex as it is - is not helped by the six month rule, hence why it can help to re-jig things before departure. This re-jigging is of interest to the Australia as it gets the six month window under control.

The problem with the subject is that it spreads into other issues such as CGT and Property ownership making it nigh impossible but to advise on a total financial situation not just on pensions.

Hope this clarifies the situation and why it is so complex and can never be said to be straightforward

all the Best