[Alan]

I am just interested to know how many of the people on here have transferred their pensions from their country of origin to NZ.

Doing this to a degree also suggest their intent to stay in the country to an extent I guess.

[BaldyBeardyBloke]

A lot depends on what type and benefits are related to your pension.

It might be that, like us, you would prefer to move it, but it doesn't make financial sense (e.g. if it's a final salary scheme).

[mgbridges]

We're just looking into this now and have a meeting with an advisor set up for next week. We want some assistance as we both have quite a few complications e.g. multiple AVCs, multiple ex-employer pension schemes etc. Will let you know in due course if we move anything.

Mainly looking into moving them as our financial base is now in NZ so if we wanted to contribute anything extra etc. it would be coming out of NZ$ salaries. We also fully expect to be in NZ at retirement age.

Anneliese

[marcia]

We have 5 pension schemes between the two of us!!

One of them we have been advised is not a good one to move - which is a pension scheme Kev had when he worked for our local council in the Uk. Another one we don't really know what is best - its with equibable life, which took a huge bashing, one of the reason we stopped paying into it! The others we could move easily and have been advised it would be benefical to do so, its just one of those jobs you never seem to get around to! :uhoh

[BaldyBeardyBloke]

We have 5 pension schemes between the two of us!!

One of them we have been advised is not a good one to move - which is a pension scheme Kev had when he worked for our local council in the Uk. Another one we don't really know what is best - its with equibable life, which took a huge bashing, one of the reason we stopped paying into it! The others we could move easily and have been advised it would be benefical to do so, its just one of those jobs you never seem to get around to! :uhoh

I suspect this is a pretty normal situation for a lot of people.

The best advice I can think of is get genuine professional advice. You risk losing out on major potential benefits if you make the wrong choice. This professional advice should be available free of charge (there may of course be charges should you then choose to ask your advisor to take some action for you). I will be starting by talking to our bank.

This is one occasion (and there aren't many) where I would doubt the ability of this forum to be any substantial help in making the decision. Pension schemes are many and very varied in their detail (I've been involved with pension stuff in the past). Add this variety and complexity to the variety and complexity of each individuals personal circumstances and there is no formula or 'right answer'.

Although, sharing names of good professional advisors would be of benefit.

[whiskythedog]

also watch out for the foreign investment fund (FIF) disclosure requirement on tax returns
if you are NZ tax resident, a UK pension fund is deemed a foreign investment fund (assuming cost/market value >$NZ50,000)
now i am assuming no disclosure until reach 4 years ?
I am a UK ACA working in a NZ CA firm - this is a minefield !
just been on a course on this so will reread notes and report back

[gonzo]

Hi putting it bluntly I think you might be barking up the wrong tree whisky the dog. The great majority of UK pension schemes do not fall under the foreign investment fund legislation providing basically they were built up solely in the course of employment (avc's etc may be different) you can phone up the IRD and they will tell you if it is a qualifying fund or not. Much of the hysteria in relation to this has been brought about by so called pension transfer specialists. In addition I disagree with the advice given in getting free advice on the subject. Anybody providing free advice has an inbuilt conflict of interest in relation to the conclusions they reach as they are more likely to recommend that you transfer. I am not saying that there might not be very good reasons for undertaking the transfer but anyone with a final salary scheme needs to be reasonably certain that they are going to stay in NZ as the benefits that these schemes offer are now virtually impossible to replicate either in the UK or NZ for that matter. Most of the advice proffered will be calculated on the basis of historic investment returns projected into the future, given the state of investment markets both now and possibly into the future (no-one has a crystal ball ) these may be extremely dubious assumptions. It is however interesting that employers are now desperate to offload the responsibility for pension provision to employees.

Just my twopenny worth and no wish to cause offence

[Alan]

Yes the final salary scheme does seem to need real attention, although not sure the best place to get this type of advice from that is truly independent. Also not sure if there are any tax liabilities in the UK or NZ to leaving it or limtis to when it can be moved.

[gonzo]

I did some work on this in May and posted on the site then

Check out this link.

http://www.ird.govt.nz/resources/fil...0764/ir257.pdf


From my understanding if you are in a qualifying scheme, there is no tax payable in NZ until the scheme starts to pay. Pages 6 & 7 of the guide are the most relevant. You can check with IRD if you have a qualifying pension scheme (QFPS)

As the literature points out this is different from the foreign investment fund rules, where from my understanding tax needs to be paid after the amnesty period expires.

[kanatakiwi]

[QUOTE=gonzo;221688]I did some work on this in May and posted on the site then

Check out this link.

http://www.ird.govt.nz/resources/fil...0764/ir257.pdf


QUOTE]

Hey Gonzo, thanks for the info,....can you have a look at the link again, it doesn't work for me, I get a page does not exist message from IRD when I click on it.
Thanks
Gloria

[gonzo]

apologies, just tried the link myself and it no longer works due to updates on the site and unfortunately does not tell you where the information now is. The point was that a QFPS does not fall into the FIF rules.

[IanW99]

[QUOTE=gonzo;221688]I did some work on this in May and posted on the site then

Check out this link.

http://www.ird.govt.nz/resources/fil...0764/ir257.pdf


QUOTE]

Hey Gonzo, thanks for the info,....can you have a look at the link again, it doesn't work for me, I get a page does not exist message from IRD when I click on it.
Thanks
Gloria

try http://www.ird.govt.nz/forms-guides/keyword/individualincometax/ir257-guide-overseas-private-pensions.html and select 'download'

Ian

[whiskythedog]

no problem gonzo
not one of my specialist areas
i will reread my notes!

[gonzo]

Hi

Thanks very much for the new link. I have saved myself a copy this time:laugh

[whiskythedog]

just been doing some research just to satifsy myself
per extract from broadbase international website
"Growth on UK Personal and Occupational Pensions:
UK personal and occupational pensions meet the NZ Inland Revenue Department QFPA (qualifying foreign private annuity) rules, so are not subject to FIF (foreign investment fund) tax – this means that as long as you cease to make contributions to your UK pension funds within four years of the start of the income year in which you become New Zealand tax resident, you are not subject to any New Zealand tax on the growth of your UK pension fund until you take benefits from it.

If you are thinking about continuing to pay in to your UK pension fund once you are resident in New Zealand, please note that under HMRC rules you only qualify for tax relief on contributions up to the ‘basic amount’ of ₤3,600. You are only eligible for this relief for five tax years after you leave the UK.

Consequently, there is no time limit where you have to transfer your UK pensions to avoid paying New Zealand tax on them. The relevant legislation is available from the Inland Revenue website, http://www.ird.govt.nz. Search for IR 257: Overseas Private Pensions. "

the last link mirrors the previous post

[joeandsacha]

What are the tax rules on pension payments in retirement from a UK scheme?

From what I understand (which isn't much as we've only been here 2 weeks!), in the UK you get tax relief on contributions then pay income tax on your pension in retirement. In NZ, it seems you don't get tax relief (apart from a bit with Kiwisaver), but then don't pay income tax on pension payments. Is that right? But presumably you'd still have to pay income tax on payments from a UK pension has you hadn't paid any tax on the contributions.

[joeandsacha]

Sorry, just read the document linked to above and that answers my own question! D'oh!

[Alan]

Can anyone enlighten me with regards to the following: "you should pay tax in New Zealand on any growth made by your UK scheme."

[Asli&Mark]

We had moved Mark's both pensions, it took 2-3 months but also I should say doing it also helped us a lot as we were allowed to take out $5000 from each pension.
Well I know that is totally pointless for the obvious reasons but we were buying a house and it was used to put some more as a deposit
Asli

[mgbridges]

just been doing some research just to satifsy myself
per extract from broadbase international website


Just a quick contribution to say that IMHO Broadbase International are well worth speaking to on the whole subject of UK Pension Transfers to NZ. We had a meeting with Steve last week and its really helped to clear up a lot of questions and he has given us some really useful documents that help explain things in a way even I can understand. Our Pensions situation is quite complicated.

Although based in Chch they travel quite a bit which was how we managed to have a face to face meeting with Steve. He very kindly came out to our home at 6pm and even managed to cope with a rather bouncy 6yr old in the back ground! :D

Disclaimer; I do not work for or receive any kind of incentives from Broadbase to recommend them and this is all my personal opinion.

Anneliese

[wwwdot]

Just a quick contribution to say that IMHO Broadbase International are well worth speaking to on the whole subject of UK Pension Transfers to NZ.

Any idea whether these companies can deal with countries other than UK as well?

My post docs in the Netherlands and Germany left me with some pension entitlements in those countries but not knowing either language makes the transfer quite complicated for me to do on my own.

[mgbridges]

Any idea whether these companies can deal with countries other than UK as well?


To be honest I doubt Broadbase would as they are quite a small company and all their experience is in the UK Financial World and then obviously after moving here in NZ's. However I'm sure it wouldn't hurt to ask and they may well know somebody/another company that can help you.

Anneliese