CasG

This is not an immigration issue as I've been here for two years now.

I have an NHS Pension sitting doing nothing in England, and wondered if it would be worth transferring it over to my Super here.

I'll be applying for my Citizenship in August (came here initially on 457) and was also wondering whether that makes a difference??

Thanks, Cas

wmoore

I'm pretty sure it makes bugger all difference whether you're a citizen or not. But I do recall something about only having 6 months after becoming 'resident for tax purposes' that you could transfer your pension tax free.

CasG

Oh bugger ....how much does it cost after that?

wmoore

Dunno. Best try and catch Alan Collett

Wendy

I'm sure I've read 40% somewhere!!

CasG

I really wish you hadn't said that....I had that figure in my mind...but thought to myself 'don't be stupid'

If that is the case...it stays there and I'll get it in 20 years or so.

wmoore

I was going to transfer mine and then due to some complications the 6-month mark passed so I left them where they were. I aint paying nobody 40% of my hard earned for nothing.

Wait a minute .......

sme

but I "think" you are only taxed on the accrued benefit from the 6 months therefore making it 18 months.

I have the same dilemma re. my NHS pension. I am leaning towards leaving it where it is cos of the final salery benefit but I really don't know what to do for the best

GinaUK

Firstly, if CasG's NHS pension is a final salary (defined benefit) pension, then there is no tax to pay (on gain in value) on the transfer irrespective of whether it's transferred within 6 months of landing in Oz or six years. That's because with that kind of pension you don't get a capital gain as such.

Secondly, if you're transferring a UK pension to Oz, you DO NOT get taxed 40% (on total value of the pension) as long as you transfer it to an approved Oz pension scheme. There are lots of approved schemes to choose from, so it's not a problem fulfilling that condition. Here is a link to the pdf file of QROPS (i.e. approved schemes). It says at the top of the document that the file is updated every month (new schemes get added all the time). This is the list as at 5 Jan 2007: http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

There are a few issues to consider on whether to transfer or not, but under the new regulations, transferring your UK pension to Oz is actually easier than it was before.

Gina

Wendy

Mate I could be wrong (it does happen every few years )

Best person to ask is Alan Collett. Have a look on his website I'm sure there is some info on there.

Wendy

Good call Gina

CasG

Cheers Gina ...it is a Final Salary pension..

sme ...why are you thing of leaving your pension there because of this ?

GinaUK

In very general terms, some of the issues to think about regarding the transfer of a final salary scheme are:

1. How old are you, i.e. how many years do you have left till retirement?
2. How many years' benefit have you accumulated in your scheme?
3. The effect of the exchange rate on your pension payment when you are retired. Other costs associated with transferring money regularly between UK and Oz.
4. The effect of investments going up or down (once your transfer value is invested in Oz).

What you need is a pension advisor with access to an actuary who can calculate different scenarios for you. (There are too many variables to work it out yourself.) Alan Collett has posted previously that he can pass people on to an actuary.

In general terms, you lose out when you get a transfer value for your final salary benefit. But if you have another 30 years to go until you retire, i.e. 30 years for that transfer value to be invested in your Oz Super fund, you could be better off in the long run.

Then there is the exchange rate effect: If on retirement you get a pension of £10,000 and the exchange rate is 2.5, you'll get $25,000. But if the exchange rate is down to 1, the same £10,000 will only give you $10,000. On top of that would be the monthly fees for transferring your UK pension to Oz.

As I said above, there are way too many variables to make a decision just by talking about it with a financial advisor. In my view you really do need to have an actuary, who can calculate the numbers for several different scenarios. Then once you understand how the variables affect your personal situation (and everyone's will be different) you can make an informed decision. At any rate that's how I intend to tackle the problem regarding our fianl salary pensions (once I've got the house sorted and on the market in a few weeks).

Gina

sme

Because of this bit (I think )and I read somewhere it was best to leave it . Its all abit confusing for me, I had 20 yrs NHS pension because I didn't opt out.
Gillian

onepearlyb

What about an NHS pension which I've only paid into for just under 3 years?It's the only pension I've ever paid into.
Is that worth transferring as soon as I get to Oz as a PR or just leave it in the Uk??? I'm so confused by all the talk about transferring pensions etc.
Gina, can you help me?
*pearly*