chumley

I know this has been discussed before but would like some current info that might help me and others

Paul I ve just read a very old post of yours about transferring uk pensions over and in particular the probs you had finding a scheme that is not locked in until retirement age.

Since you got your immigration hat are you able to advise on this or do you have any recomendations of which bank or whatever to go to?
Im looking to transfer a civil service pension over.

I understand that you have to be out of the UK for 5 years before you can get at it?

Was looking forward to collecting my pension at 50 and now the pikey UK government has abandoned this scheme as from 2010 so I miss out by about 9 months:curse:

I would now like to put my hard earned pension in canada

Any pointers from you Paul or anyone gratefully received

Thankyou

Tangram

I transferred mine and the wife's last year. When I get a moment ( I work ) I will give you an update on how it went. Took about 3-4 months to sort out from start to finish.

Almost Canadian

Try Mark Walker. He is a former English IFA and now licensed in Canada. He arranged all of mine very quickly and efficiently and at no charge to me. As well as being a solicitor in England I was an IFA as well. He knows his stuff. A search on transferring pensions will bring him up. I don't know if he is able to transfer to your part of the world.

HTH

Tangram

He is not authorised for Nova Scotia, only BC and obviously Alberta. I will PM the details of the guy who did mine ( although sometimes wish I hadn't as they have gone down $60,000 since trasferring ).

glenfiddich

Tangram...what qualifying pension did your pension get put into?...60,000 is a huge loss.

Tangram

RRSP.

JayMill

I was referred to a pension specialist who operates nationwide. My wife and I were able to transfer both of our pensions to Canada. Not only could we transfer the pension we were able to withdrawal a portion of the funds to put toward the down payment of our first home here. Please PM me if you would like the contact information. If you would like to contact him directly his username on this site is PensionPete. His team has worked a lot with the Calgary Police helping their force and family transfer their pensions. In addition his team has worked with NHS nurse pensions in Vancouver. I personally dealt with Peter and his BC team leader. They came highly recommended to me I am happy to refer them.

mjwalker007

Hi Chumley,

There is no problem moving your pensions over to a non locked in RRSP in Canada. As regards the 5 Year rule, you are right , you have to have been non resident from the UK for 5 Years if you want to look at accessing any of the funds from the RRSP once you have transferred it to Canada. If you do access any before this time, the scheme in Canada is obliged to report it to the UK and you could get charged up to 55% in tax !!!!!
As has been discussed on the forum many times, there are many advantages of moving your UK pension's to a Canadian RRSP.
In respect to Tangram's post of losing $60000. That does seem a large amount to have lost, but ultimately will depend on where and what fund the money has been invested in. Many of my clients on this forum have invested in Guaranteed Mutual Funds, and I'm sure they will agree that when they get their annual statement, the one thing they do not have to worry about is the fluctuations in the stockmarket !!
Also as mentioned I am licensed in B.C and Alberta but if anybody is looking for advice over the eastern side, Ontario, I touched base with a guy who does exactly what I do and he also posts on the Forum. If you need to contact him his detail's are ManchesterMike.

Hope this helps a little

mjwalker007

Hi Jaymill,

just to clarify for everybody on the forum, I presume you had been non resident from the UK for 5 Years before you withdrew from the RRSP under the Homebuyers rule. As mentioned on the previous post it is very important for Ex Pats to remember this rule as the UK taxman could come knocking with a tax bill of up to 55%

chumley

many thanks tangram and all

will get cracking on this

just one more question does the 5 year waiting period start from when you actaully apply to transfer or from the date you left the UK?

I ask because fingers crossed we hope to be PR soonish but we have already been here a year and Im hoping that means I will now have a 4 year wait and not 5 from the date of PR/applying to transfer?

mjwalker007

Hi Chumley,

The 5 year period is from when you were classed as non resident in the U.K , not from when you transfer the pensions over , so therefore if you have already been here a year, 4 years remain.

Therefore people that have been non resident for 5 years or more can transfer their pensions over and the rule does not apply to them

rw1969

Hi JayMil,

We used PensionPete here in Nova Scotia and he was awesome. My wife formerly worked with HMRC in the UK and believe me...she put him through the ringer but he really knows his stuff. Previous to meeting with him we had spoken to a couple of other advisors who like MjWalker mentioned the 5 year withdrawal rule. Pete explained that there isn't just one plan for all institutions in Canada. He showed us copies of his acceptance letters from the UK.

Long story short, we were able to draw on a portion of our pension and prior to doing this my wife made enquires with her former HMRC colleagues who said it was ok under the plan. She then confirmed this through a neighbour who works for Rev. Canada. My suggestion to everyone is do your due diligence but after doing ours, we would strongly recommend PensionPete.

If anyone has any questions about our experience feel free to pm me.

RW

mjwalker007

Tax can be a tricky issue, and I always feel it is best follow the letter of the law when it comes to this issue.

The 5 year rule is an integeral part of the rules that the HMRC set up when setting out requirements for QROPS.

I too have a contact who currently works in the HMRC and the 5 year rule is relevant.

The five years doesnt prevent you from making a withdrawl from the RRSP but it could trigger an unauthorised member payment charge (as mentioned in earlier posts) aswell as a penalty on the Canadian side for withdrawing from the RRSP aswell.

In respect of the comment that was made regarding the fact that there is not just one plan for all institutions in Canada, that is correct, but there is definately one set of rules for QROPS qualifying schemes in Canada, and if the Canadian Institution that is receiving the money is QROPS registered(which it has to be to accept the money from the UK) it has to follow the rules set out by the HMRC.If it doesnt it could get stripped of its QROPS status ( as happened to QROPS schemes in Singapore that broke the rules !!!)

With regards to the neighbour who works for Canada Revenue, I would be surprised if they knew the rules regarding unauthorised payment charges from a non uk pension as this is dealt with by the HMRC and the tax is charged by the HMRC. I know this as I have spoken to Canada Revenue myself regarding this issue.

This is the link to the HMRC Pensions Rulebook and the 5 year rule is there in black and white regarding unauthorised withdrawls from a non uk pension.

http://www.hmrc.gov.uk/manuals/rpsmm...sm13202100.htm

This only may not come into force if you are over 55 after april 2010 and start receiving benefits , but have been non resident for less than 5 years.

I am not doubting the advice you have received at all, but If there are any other ways around these rules, I personally have not seen them or heard of them.

My only concern is that if the rules are not followed ( as shown in the HMRC Pensions Rulebook) and you are taxed a member payment charge, it would then be too late ! As a client you have to feel confident that this situation will not arise.

Almost Canadian

Are you suggesting that somebody of non pensionable age (UK defined) withdrew funds from a scheme that had received funds from an English pension prior to being a non resident of the UK for 5 years without paying UK tax? That doesn't sound right to me. CRA has nothing to do with it. It's a UK tax issue.

I will wait to stand corrected but I can't imagine the UK going to all the issue of QROPS if schemes such as this exist. Now if this scheme is run by an iffy character that chooses not to inform HMRC if people withdraw prematurely.....

rw1969

I appreciate the comments but can only repeat what I said. My wife and I spent a lot of time looking into this including speaking with HMRC and Rev. Canada on the entire transfer process. We spoke with several advisors and found PensionPete to be the most knowledgable and experienced. I suggest everyone do their own research and make an informed decision.

I find it funny that you assume that you know all there is to this extremely complicated process and you are quick to label someone as "iffy" simply because they have a different opinion or perhaps even a competitive edge!

I will leave things there as it is the weekend and there are far more productive things to be doing with one's time. Cheers!