UK Occupational pensions
 

The endowment topic provokes me to ask what the assembled masses have done with their UK company pension(s)? I have two final salary schemes frozen from previous employers in the UK. Left alone they will pay me a pension (not a large one but more than a few k) in 20something years time.
I've not transferred them to any other scheme in the UK or here primarily because they are both reasonably 'safe' schemes that should be around when I come to draw and also because I can't put my hand on my heart and say that I will definately be in Canada when a pensioner.

Reading the tax implications in Canada on the growth in value of UK endowments I am now afeared that I have done the wrong thing! If I leave em in the UK and then start getting paid them in 20something years time am I going to get a whacking tax bill on the growth or just be taxed on the income? If I move em over what do I do, get a lump sum to stuff into my RRSP? Or do I need a smart tax advisor?

I'm sure I'm not the first to go through this. Any experience or advice welcome!

Cheers.
AX

Re: UK Occupational pensions
 

We have a financial adviser looking into this for us at the moment, and we are checking what the transfer values of the pensions would be if we were to transfer them to a RRSP here. Will let you know if we find out anything.

Deborah

Re: UK Occupational pensions
 

Thanks Deborah. I have a vague memory of talking about this with your other half back when we met up in Halifax sometime ago. Appreciate any light your financial advisor can shed.

Re: UK Occupational pensions
 

I would love to know your findings, cause the information I got from my IFA was that the rules changed back in April, last budget, and it is now almost impossible to move UK pensions overseas with out huge penalties, along the lines of 50% of fund value, the money had to be deposited in some form of special pension fund, that if it existed would most likely give absolutely crap returns due to the level of charges required to run it, and no financial institution in Canada had such a product at least at that time which was June.

Dozzzzy :zzz:

Re: UK Occupational pensions
 

Yes i would also like to know as i have drawn a bit of a blank on this subject also. I have posted similar question on other forums but no real definite answers as yet. I beleive that since the changes back in April any overseas scheme you transfer to must be inland revenue approved and as far as i know there are not any of these in Canada as yet. I have mailed the inland revenue for advice and got automated response saying "you will receive a reply within 10 days" that was on 21/9 so i will post any reply i get when i get it.

Re: UK Occupational pensions
 

How "clever" are the Canadian authorities ?

Say you kept them in the UK, have the payments directly into your bank account, then withdraw cash locally through the ATM machine using your English card, are you likely to come up on their radar.

Cant see it myself.

Also as you say if your unsure you'll still be here at 60-65 its a hell of a risk to transfer everything over here.

Re: UK Occupational pensions
 

Herewith some up dated information i received today direct from the Inland Revenue if it helps. I have pasted their mail below:

Thank you for your email.

Provided the overseas scheme that is to receive your transfer is registered with UK HMRC as a 'Qualifying Recognised Overseas Pension Scheme' ("QROPS"), then it may accept a transfer from a UK employer scheme or personal pension plan.

There is no UK tax penalty on transfers to QROPS schemes, though the QROPS is obliged to notify the UK HMRC of any payments it makes to someone who is either UK resident at the time it makes the payment, or has been UK resident in any of eh five years prior to the payment.

A list of QROPS can be found at
www.hmrc.gov.uk/pensionschemes/qrops-list.htm

If an overseas scheme is not on the list but wishes to apply to register with us as a QROPS, then it can do so by completing form APSS251. The form (and explanatory notes) can be found at www.hmrc.gov.uk/pensionschemes/overseas.htm

For queries concerning the state pension, please ring 0191-225-0180.

Yours sincerely,

Ray Evans

Audit and Pension Schemes Services Website: www.hmrc.gov.uk/pensionschemes

Re: UK Occupational pensions
 

Thanks for the information, no schemes in Canada yet, but what's with Australia, 31 schemes, they must really like UK money :D

Dozzzzy :zzz:

Re: UK Occupational pensions
 

Been following this thread with interest and have exactly the same questions as most of you...
We had a financial advisor look into for us and here is what she said.

"I asked my Compliance Office at Worldsource Financial about the possibility of transferring your pension money from Britain. He has no idea if it can be done or if Canada and Britain have an agreement. He did one for a client that had a pension in the USA. He did not know whether that one could be done either but he set up an account for his client and had the client sign the special government transfer forms that we need on this end. They actually sent the money from the USA pension account to a locked-in RRSP account here.

What Ted recommends is that an account be set up using a locked-in RRSP application along with the Nova Scotia lock-in agreement and send the transfer form to your Pension Department in the UK and see what they will do. The pension department will certainly let you know if this is possible. That way you will know how to plan for your future knowing that you will have a pension and how much if they won't let you transfer it. It is worth a try."

Any the wiser? Probably not. However, as she said - worth a try....

Graeme

Re: UK Occupational pensions
 

I have a friend who is a Financial Planner here in Canada. He is a pension transfer expert and has assisted numerous ex-pats in transferring over their pensions. He has helped people throughout Canada. I would post his info but don't want to violate the rules! Anyone interested in contacting him can e-mail me for his information. I guarantee he will have the answers for you.

Re: UK Occupational pensions
 

The list is now updated with 20 or so Canadian schemes

Re: UK Occupational pensions
 

Each province has different regulations, and schemes available in Canada may not necessarily be available in particular provinces ie Nova Scotia.

Deborah

Re: UK Occupational pensions
 

I am still receiving quite a few requests for my friend's information regarding UK pension transfers. For those of you who are interested, he will be doing free seminars on the topic in Edmonton and in Calgary during the last week of June. He is also doing seminars in Ontario. Anyone who is interested can PM me and I will forward you the details along with his contact information.

Cheers,

Excdncop (formerly Canadapension)

Re: UK Occupational pensions
 

I am no expert on Occupational pensions, but everyone I know who has moved over here has transfered their pensions to here. Nurses, Police officers, teachers and one friend who worked for a perfume company as a sales rep. You just speak to a financial guy (pm me as I have a great one) who does all the work for you.

Now we did leave our endownment in the UK and he tells me that we will not be taxed in Canada for it. Now he is my financial advisor and so if he is wrong, I will go mad at him. But at the moment he is doing everything right and I trust him with our money.

Re: UK Occupational pensions
 

Anyone interested in answers just email me directly as I have personally transferred over 30 UK pensions (from many different fields) over the past few years. There is a lot of misinformation floating around this website so email me direct and I will give you the nitty gritty.

Cheers,
Brian