[3littlepikes]

Hi Anybody had the pleasure of leaving NHS to work in NZ . I am wondering what to do with my superannuation pension ( approx 15yrs ) - can i transfer it ? will my new employers tell me how or do I just freeze it until my retirement comes ( long time yet ) :roll

[Alan]

Don't know the details but I think you can get it paid out abroad somehow, sure someone on here will know.

[Plymgirl]

I am so glad you posted that question and I hope somebody knows the answer as my OH has approx. 22/23 years NHS pension and we really need to find out how and if we can get the money transfered or what happens.
Regards
Plymgirl

[Hippywench]

I have 7 years NHS pension too; OH has 5 years (both frozen). I don't know the answer to your question but was hoping we could maybe transfer them into an NZ pension.

[Mels]

I have 18 yrs NHS pension too, so add me to the 'need to know' list.

Mels

[JandM]

I just found these links.

http://www.dh.gov.uk/en/Policyandguidance/Humanresourcesandtraining/Modelemployer/DH_4052091

http://www.thisismoney.co.uk/mortgages/homesabroad/article.html?in_article_id=423182&in_page_id=505

It looks as though your NHS pensions will be payable overseas. Then, the second link talks about consolidating several pensions into one scheme (though your public sector one is likely to be more advantageous than many private ones, I believe).

[Croft]

I was surprised to see that the NHS pension doesn't count as a 'governent service pension' - http://www.hmrc.gov.uk/cnr/uk_gov_pensions.htm - for the purposes of most double taxation agreements. From the link:


National Health Service Pensioners

National Health Service Pensions are not regarded as Government service pensions for the purposes of most Double Taxation Agreements.

Many Double Taxation Agreements allow for exemption from UK income tax to be claimed. Please refer to the DT Digest or contact us if you need further information on how to make a claim.

[crawf_sa]

try this link if your NHS pension was in England or Wales
://www.nhspa.gov.uk/nhspa_site/deferred_members/transferring_pension_rights/index.htm
If like me it was north of the border still trying! to find info.think best bet is a professional financial/pension consultant for advice.

[chocolate cake]

Always best to take advice from pensions advisor, but I'd guess it's a final salary scheme? in which case it's usually best to leave it in there.

[gonzo]

Hi there,

As other respondents have pointed out this is a very complex area. I believe that the scheme is obliged to produce a statement of future benefits as well as a transfer value for you and it might be sensible to put this in train. My understanding of the legislation in NZ and the UK is that you can only transfer the monies into an approved scheme in NZ and that you need to be employed or self employed in NZ before being able to do this.

The tax implications also need to be considered as the value of the uplift in the fund can be taxed in NZ and you may need to disclose this to the IRD in NZ. There are specialist transfer firms in NZ who can provide advice (usually fee based :laugh ) and there are also firms who will undertake the transfer on your behalf (usually commission based :laugh )

They may indeed advertise on this and other emigration sites :laugh

However there are exemptions in terms of the time when you need to make any decisions and you would be wise to use these, particularly if it is a final salary scheme because the benefits offered may well be impossible to replicate in a private sector scheme. Additionally you will want to be certain that you will be spending your retirement in NZ as once transfers are undertaken it will be impossible to reverse the position so please think very carefully prior to making a decision as you may be hopefullly :laugh pleasantly surprised at the value of the scheme.

[chocolate cake]

Certainly if you're transferring your pension, it needs to go into a Qualified Recognised Overseas Pension Scheme in NZ.

You certainly need expert advice, normally staying in the UK it's not recommended to trf money out of a defined benefit scheme. However reading this link
http://www.skillbasemigration.co.nz/moving-to-nz/pensions.html
'.....If you leave your funds in your UK pension, you need to declare this and pay tax on any growth made by your UK pension scheme on your NZ tax returns. ..', which seems a tad unfair, as you'd expect your pension to grow, and with a defined benefit, usually your entitlement will grow by the lesser of inflation or a set %.
This link seems to indicate you'll be taxed on this, whereas if you stayed in the UK, this would be untaxed until your retirement when you begin to draw from it.

[gonzo]

Hi there,

as I am affected by this I thought I would do some further work and I have been looking on the IRD website. My understanding is that the tax treatment depends on whether the scheme is a QFPA or not. If it is a QFPA then there is no tax payable on the unrealised uplift in value, there is however tax payable on the benefit when it is paid i.e when you receive the pension (just as it would be in the UK). I suspect most UK defined benefit schemes will fall into the QFPA category and therefore the information posted on the skillbasemigration website will not apply to these schemes as only non QFPA schemes will fall under the FIF regulations. I think that the guy is simply trying to drum up business or has an incomplete knowledge of the legislation. This is not to say that it might not be sensible to transfer the scheme as this will eliminate currency transfer risks etc, but from my understanding there is nothing to stop anyone simply leaving the scheme in the UK and paying NZ tax on the benefits when they are paid.

Also worth noting for those in NZ is a telephone number that will enable you to speak to someone in order to clarify whether the scheme qualifies as a QFPA or not

The appropriate link to the IRD website is below.

http://www.ird.govt.nz/resources/file/ebe280421310764/ir257.pdf

[chocolate cake]

Thanks for that link, that's more re-assuring. I think I'll initial keep my pension in the UK (company defined benefit 18 yrs contribution + some avcs - wish I could split 'em but I can't) and review the situation a few months down the line.