bewitching soul

Hi
I'm new to this so bear with me: confused:
I am a nurse with 20+ years NHS pension , they have told me to transfer my pension to a QROPS pension scheme in Oz but every one from the HMRC list is either no longer registered or won't take transfers.
a few who looked ok aren't registered so another head ache
I am looking for a pension scheme that offers simuliar to NHS but I know hat has all changed now.
I am aware that I have 6 mths from entry before I will be hit by tax on my pension.
any help would be gratefully acknowledge,espeacially from any former uk nurse who have successfuly transferd

bewitching soul soon to resident in Perth

22B

It is very confusing - I remember tearing my hair out over transferring OHs army pension.


Here are a couple of general info websites that may clarify, but I have searched them for UK/QROPS info and nada.

http://www.industryfunds.com.au/

http://www.fido.gov.au/fido/fido.nsf...20super%20maze



A couple of tips:

You say they 'have told you' to transfer - but I doubt that they can make you. Have you taken financial advice on the pros and cons of transferring? Things to understand are:-
- the benefits you will get if you remain vs the benefits you will get if you move
- the tax effects
- the exchange rate effect

Try to get into an industry fund if you can - they are generally cheaper. They also offer very cheap life insurance. HESTA is the one for 'health and community services'. Why not contact them (phone/fax/e-mail) and ask about transfers/QROPS?
http://www.hesta.com.au/Members.html


The tax-after-more-than-6-months-post-entry thing is correct, but are you aware that it is a tax only on the growth of your fund since entry? In the current climate, you may well find that the growth is minimal (or even negative) and therefore the tax (@15%) is small or nil. So don't sweat it.
If you wait to transfer beyond 6months and get a better exchange rate on the whole amount, then you might actually be better off!
Anyway, in my experience I don't know how anybody gets a transfer done within 6months - it was so bloody slow!!! But that might just be the army admin (I reserve the C-word for the lot of them!)


I'm sorry this isn't of more help - but at least you know you're not the only one who finds it confusing and maddening!!

bewitching soul

looked at all, as previously stated, Hesta isn't QROPS better off transfering as taxed heavily this end if don't ,espeacially when recieving pension,yes took fianacial advice.
web sites no help

scrubbedexpat055

Just remember, that once transferred, your pension fund has to stay in Australia, even if you return to UK or move elsewhere in a few years.

This may not apply to those on temporary visas.

Whilst I can understand you being concened about the tax, I would suggest you wait a while an be absolutely sure that you want to stay in Oz before moving your fund.

Pete

Sally Simpson

I think this is good advice!
I too am a nurse & the advice from my financial adviser is to leave the fund here in UK. Am seeing him soon to discuss it further ie tax benefits/penalties & will let you know when I have further info. There seems to be very conflicting advice but my adviser has nothing to gain by his advice whereas the Aus people will gain commission etc.

22B

OK - I will try harder to find you a QROPS one.

(Long Shot FYI, I happen to know that NGS Super is QROPS. It's a teacher's fund - you're not going to be nursing in a school by any chance?)

bewitching soul

Thanks for your info
working with children but unfortunately not in a school setting

I'm in a hospital on a permanent visa.

sallyclaire :-I would be grateful for any info once you've seen your advisor really am puzzled by all of this, was informed penalise could be quite alot.

GinaUK

@bewitching:

As 22B said: After the 6 months tax is paid on the growth of the pension fund in the last tax year. However, this does not apply to you.

The NHS pension scheme is a final salary scheme (aka defined benefit scheme). There is therefore no year-on-year growth - you only get that with a money purchase scheme (aka defined contribution scheme).

When you think about whether to transfer your NHS pension to an Oz super, there are many other issues to consider. For example, lump sum treatments on retirement; if you die, your spouse will get all of your Oz super fund but not all if you leave it in the UK; the effect of the exchange rate on a transfer value etc etc.

It's best to get an adviser who understands UK final salary schemes as well as Oz super funds and can factor in your personal circumstances and what's best for you.

I'd suggest you contact Alan Collett, who is a UK/OZ qualified tax advisor and who will be able to put you in touch with a qualified person. Alan posts on the forum. And his contact details are here: www.collettandco.com.au/

Gina

22B

The plot thickens! With my OH's final salary scheme, we were told that we had to pay tax on the growth of the transfer value between our Aus arrival date and the amount actually received......

ho hum - part of me thinks I should chase that up and potentially get a refund, the other half thinks that I cannot bear the stress of having to revisit the whole damn maddening thing.....

GinaUK

Me thinks whoever told you that little gem didn't understand about final salary schemes. With a money purchase scheme it would make perfect sense.

(Bear in mind that final salary schemes are a somewhat alien beasts to Australian financial advisors, because they don't have them here at all. All super funds are money purchase. That's why I suggested Alan Collett before, becaue you'll need someone who understands both.)

Gina

22B

[QUOTE=GinaUK;6671362 That's why I suggested Alan Collett before
Gina[/QUOTE]

I shall give same a buzz! (Do you get points for the referrals?)

GinaUK

Absolutely not! I have no connection with Alan Collett's businesses. I am just a happy customer. We used his other firm, Go Matilda, for our visas.

We've also got two final salary schemes to transfer over and will use him to help us with it (just waiting for the exchange rate to improve).

In the UK, I used to work in pensions hence know quite a bit about it.

Gina

Sally Simpson

This is the contact that Allan gave me...

[email protected]

I haven't followed it up yet as I really didn't believe that we were going to be in a position to move quite as soon as we are, plus I am very disorganised and my final excuse is that I thought I would talk to my financial advisor here first.