QROPS Transfers

 

Under 55 Secure CETV - DB/Final Salary Schemes into UK SIPP

Download our Free E-book for the latest (2015) QROPS changes


Breaking News 9 March 2017: QROPS transfers to New Zealand, Malta, Guernsey, Isle of Man etc will now incur a tax charge of 25% on the total transfer value if the individual does not reside in the same country as the QROPS - click here for more details.

 

We can facilitate an integrated global solution, incorporating UK advice (where required) from FCA licenced advisers, known specialists and leaders within the UK transfer marketplace. UK FCA Advice costs £900 and UK SIPP set up (where required) costs £1,850. If you are aged below 55 yrs and have a UK DB (Defined Benefit/Final Salary) scheme, you should consider transferring into a UK SIPP until you turn 55 yrs of age.

Secure a higher Transfer Value for DB Schemes:

Transfer Values for Defined Benefit / Final Salary Schemes have been at all-time highs for the past several years with UK interest and gilt rates at historical lows. These values have been predicted to decline as interest and gilt rates were predicted to rise. Recent evidence from client CETVs received in January 2017 have shown these values have now begun to decline. 


If you are under 55 yrs of age and have a UK DB Scheme (Defined Benefit/Final Salary Scheme), we may be able to assist you in securing your CETV (Cash Equivalent Transfer Value) via an interim UK SIPP, thus keeping your retirement monies secure* until you are eligible to transfer to Australia. We can facilitate an integrated global solution, incorporating UK advice (where required) from FCA licenced UK advisers, known specialists and leaders within the UK transfer marketplace.

 

*Two main areas of concern for UK DB Schemes:

  • Currently High CETVs which may decline in the future – Transfer values have been at all-time highs given the UK interest and gilt rates are at historical lows - therefore these values are likely to decline when interest and gilt rates rise (values have begun to decline in January 2017).  For members to secure these current high transfer values, we can facilitate an interim transfer of the lump sum value into a UK SIPP (Self Invested Personal Pension) until you can transfer those funds to Australia.
  • Possible Future Prohibition of Defined Benefit Transfers –There is a general concern within the industry as to the possible prohibition of future transfers from all Defined Benefit Schemes ( as per the recent 6 April 2015 ban on all unfunded Civil Service Defined Benefit Schemes).

 

Large Fluctuations in CETVs - Case Study:

CETVs (Cash Equivalent Transfer Values) can vary significantly (up or down) each time they are calculated. CETVs can be much higher or much lower than the previous calculation and this can occur within short periods of time, even as short as 3 months (as per our client case study below). Each quote is usually guaranteed for a period of 90 days from date of issue and is based upon a number of factors, including current market conditions (eg interest rates & gilt rates), benefits to be received by members and the investment strategy of the Scheme.

  • Actual Client Case Study:  One of Sterling Planner's clients experienced large fluctuations in their CETVs for a UK Company DB Scheme over an 18 month period as follows:
  • Jun 2012   CETV  -  £1,598,753
  • May 2013  CETV  -  £1,366,464  (↓ £ 232,289 = 14.5% drop in 12 mths)
  • Aug 2013  CETV  -  £1,492,766  (↑ £ 126,302 = 9.2% increase in 3 mths)

 

Additional Safeguards for DB Scheme Transfers:

On 6 April 2015, new HMRC regulations, governing UK pension transfers resulted in the additional safeguards required for all Defined Benefit/ Final Salary Scheme transfers (within the UK or overseas) with transfer values greater than GBP 30k are as follows -  members must obtain advice from a financial advisor who is independent of the fund. These advisors must be authorised by the UK Financial Conduct Authority (FCA) and have appropriate experience (i.e. only UK FCA approved advisors have such permissions from HMRC and there are a limited number of these advisors).


Additional Fees for the UK advice component are circa GBP 900 for the UK Statement of Advice and GBP 1,850 to set up an appropriate UK SIPP for initial transfers (as required).

 

Call Sterling Planners on 1300 132 737 to discuss our Over 55 SMSF Transfer Option or our Under 55 Secure your CETV Option.