Unfunded Public Sector Pensions cannot be transferred from April 2015
ARMED FORCES, NHS, TEACHERS, POLICE, FIREMEN PENSION TRANSFER BAN CAME INTO EFFECT APRIL 2015
The UK Government banned the transfer of unfunded Public Service Pensions to Australia from April 2015.
That means Armed Forces, NHS, Teachers, Police, Firemen pension holders cannot transfer the capital sitting behind their pension to Australian super from April 2015.
The UK Government cited their reason for this change is due to these schemes being largely unfunded, consequently the continued transfer of these schemes could represent a significant cost to the UK taxpayer.
UNFUNDED PUBLIC SECTOR FUNDS
Today Public Service Pension holders have 1 option:
ie. Leave your pension in the UK till retirement and then draw down your pension from the UK
FUNDED PUBLIC SECTOR FUNDS
Members of FUNDED Public Sector schemes (largely confined to local government employees) will still be able to transfer in line with the private sector requirements.
PRIVATE SECTOR / DEFINED BENEFIT FUNDS
HM Treasury has stated that “the existing flexibility of transfers out of private sector defined benefit schemes for all pension scheme members (other than those whose pensions are already in payment)” would be retained. However, as with funded public service pension schemes there would have to be additional safeguards for transfer values that exceed £30,000.
Please note that if your defined benefit pension is worth more than £30,000, you must have sign off from an authorised UK financial adviser prior to transferring money out. Please contact us as we can arrange this for you.
Please contact us to discuss the cost for the UK financial adviser.
MONEY BENEFIT SCHEMES:
Transfers from account based or ´Money Purchase´ schemes will continue to be allowed.
PERSONAL PENSION FUNDS:
Transfers from Personal Pensions can still transfer to an overseas QROPS.
