UK Pension Transfer to Canada
#151
Re: UK Pension Transfer to Canada
Based on the information provided, I concur that when a final salary scheme is in payment, then it is unlikely to be transferable but it is worth double checking with the NHS Pension division.
With regards to exchange rates, have a chat to a currency exchange company and ask what they can do for your situation. I know of expats that have locked in an exchange rate for 12 months to provide a fixed currency rate for that time, then afer 12 months the rate is reviewed. Of course the danger with this is that if the currency improves, then you are locked into a lesser exchange rate - or it could work in your favour.
With regards to exchange rates, have a chat to a currency exchange company and ask what they can do for your situation. I know of expats that have locked in an exchange rate for 12 months to provide a fixed currency rate for that time, then afer 12 months the rate is reviewed. Of course the danger with this is that if the currency improves, then you are locked into a lesser exchange rate - or it could work in your favour.
#152
Re: UK Pension Transfer to Canada
The receiving scheme in Canada is obliged to report any withdrawls within this 5 year period to the HMRC, therefore that is how they would know and where to contact you. In order to get QROPS qualification from the HMRC there are certain rules that the Canadian schemes have to follow, with this being one of those rules.
The reason the HMRC care is that they do not want people to abuse the pension system and be able to do something they they would not normally be able to do with a U.K pension if they were still in the U.K. QROPS is available all over the world so they do not want people to transfer a pension to a jurisdiction that would allow them to cash it in , then return back to the U.K, so therefore flouting the current U.K pension rules. Although they deem that if you have been left the U.K for 5 years, the chances are you may not be coming back, so relaxing the unauthorized penalty rule.
The reason the HMRC care is that they do not want people to abuse the pension system and be able to do something they they would not normally be able to do with a U.K pension if they were still in the U.K. QROPS is available all over the world so they do not want people to transfer a pension to a jurisdiction that would allow them to cash it in , then return back to the U.K, so therefore flouting the current U.K pension rules. Although they deem that if you have been left the U.K for 5 years, the chances are you may not be coming back, so relaxing the unauthorized penalty rule.
#153
Just Joined
Joined: Jan 2005
Posts: 13
Re: UK Pension Transfer to Canada
1) Does anyone have experience of transfering a UK personal pension plan to a TD Waterhouse RRSP? I notice they are not on the HMRC QROPS list.
2) This thread has many comments of transfers being made into regular RRSPs. Clearly this is a fact since people have done the transfer - but how did HMRC approve such a scheme when it is not locked in? Its almost as if the Canadian institution has provided guarantees to HMRC that in fact are not the case. Just interested in people's comments on this.
Thanks
2) This thread has many comments of transfers being made into regular RRSPs. Clearly this is a fact since people have done the transfer - but how did HMRC approve such a scheme when it is not locked in? Its almost as if the Canadian institution has provided guarantees to HMRC that in fact are not the case. Just interested in people's comments on this.
Thanks