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Moving Pension

Moving Pension

Old Sep 18th 2007, 12:59 am
  #1  
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Default Moving Pension

My wife immigrated to the U.S from the UK a few years back. She left behind a small pension when she did so. We have tried a few times, unsuccessfully, to transfer the pension to a U.S. based account. Neither the U.S. bankers I've spoken with, nor the holders of the U.K. pension (which is state subsidized), seem to willing or able to assist with this transfer. I'm wondering is anyone has any advice as to where I can get information on this. The largest problem seems to be a disparity in terminolgy, but I'm very inexperienced with dealing this international transfers of any type. Any help would be appreciated.
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Old Sep 18th 2007, 1:02 am
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Default Re: Moving Pension

Originally Posted by Chuddox View Post
My wife immigrated to the U.S from the UK a few years back. She left behind a small pension when she did so. We have tried a few times, unsuccessfully, to transfer the pension to a U.S. based account. Neither the U.S. bankers I've spoken with, nor the holders of the U.K. pension (which is state subsidized), seem to willing or able to assist with this transfer. I'm wondering is anyone has any advice as to where I can get information on this. The largest problem seems to be a disparity in terminolgy, but I'm very inexperienced with dealing this international transfers of any type. Any help would be appreciated.
Very difficult to transfer a pension.

What kind of pension is it? Final salary or contribution based? If the former, is it index linked?

Why do you think a US pension administrator will do better than a British one?
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Old Sep 18th 2007, 1:09 am
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Default Re: Moving Pension

Originally Posted by Elvira View Post
Very difficult to transfer a pension.

What kind of pension is it? Final salary or contribution based? If the former, is it index linked?

Why do you think a US pension administrator will do better than a British one?
Its contribution based, I do know that much. I do not know if its index linked I don't have the paperwork handy at this minute.

we are interested in putting it into a U.S pension because in the event of an emergency we know that the money is available for our use immediately (if even at a penalty through most plans) which it currently is not since its sitting in the U.K.
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Old Sep 18th 2007, 1:16 am
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Default Re: Moving Pension

Originally Posted by Chuddox View Post
Its contribution based, I do know that much. I do not know if its index linked I don't have the paperwork handy at this minute.

we are interested in putting it into a U.S pension because in the event of an emergency we know that the money is available for our use immediately (if even at a penalty through most plans) which it currently is not since its sitting in the U.K.
If it's contribution based, it cannot be index linked.

No one can get at a pension immediately. The whole point is that you save up till your retire, and then you get it back in drips and draps.

Tax contributions get tax relief, so even if she could cash in or transfer the pension, it would generate a tax bill.

I would recommend leaving it where it is, keeping a UK bank account active, and use the proceeds via ATM withdrawals once your wife retires.
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Old Sep 18th 2007, 1:38 am
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Default Re: Moving Pension

I appreciate the recommendation, it follows along with most of the advice we've received. This is not our wish, however, to maintain the account in the U.K.

Perhaps my idea of "immediately" is different than what I implied. I'll give you a little more information. Her current U.S plan allows, should she choose, her to roll her plan into another plan at another employer or an IRA. IRA's certainly allow for early withdrawal (most often penalized, sometimes not).

Our desire is to move the U.K funds into an account that allows for an IRA rollover, we are willing to put her current U.S pension into the same account if its not able to accept her U.K. funds (a question that no one I've asked seems to know the answer to).

The idea at this point is to deal with poor set up established previously and set things up the way we want them, wether or not that runs contrary to what we've been advised.
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Old Sep 18th 2007, 1:42 am
  #6  
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Default Re: Moving Pension

Originally Posted by Chuddox View Post
I appreciate the recommendation, it follows along with most of the advice we've received. This is not our wish, however, to maintain the account in the U.K.

Perhaps my idea of "immediately" is different than what I implied. I'll give you a little more information. Her current U.S plan allows, should she choose, her to roll her plan into another plan at another employer or an IRA. IRA's certainly allow for early withdrawal (most often penalized, sometimes not).

Our desire is to move the U.K funds into an account that allows for an IRA rollover, we are willing to put her current U.S pension into the same account if its not able to accept her U.K. funds (a question that no one I've asked seems to know the answer to).

The idea at this point is to deal with poor set up established previously and set things up the way we want them, wether or not that runs contrary to what we've been advised.
Well, all I can suggest is that you try the Pensions Board at the Motley Fool:

www.fool.co.uk
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Old Sep 18th 2007, 1:45 am
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Default Re: Moving Pension

I will try them, thank you
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