Guest roscoe Posted June 13, 2008 Share Posted June 13, 2008 I am thinking of transferring to the RAAF from the RAF, the only thing holding me back is the thought of starting again, working towards my pension date. Can I transfer these years across?:goofy: Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted June 15, 2008 Share Posted June 15, 2008 Hi Roscoe, this reply is about your pension. My husband and i have been looking to go to OZ for a ages, but things keep cropping up that scare the life out of us. We both have Government pensions like yourself and we have been told we might lose up to 40% of it if we go to OZ. It appears although we can't get anyone to confirm it that the OZ government can take our hard earned pensions. We have posted other entries like this on other sites and nobody ever replies. i wish those that have emigrated would just let us know what has happened to their pension, if anything. Helen. Link to comment Share on other sites More sharing options...
Elaine&Chris Posted June 15, 2008 Share Posted June 15, 2008 Hi Roscoe and Helen, Ok I will try and answer both your questions: Pension: The UK has an agreement with Oz regarding Tax and dependant on which type of pension you have the rules differ. For Government Pensions (your forces pension) you will not be taxed on it in the UK if you are taxed on it in OZ. If you ring: 0845 0700 040 (or 029 2032 5058) they will explain how to sort this out (note to all this number is for Forces pension enquireies only as are these rules). The rate at which you are taxed on your pension in Oz depends on how much you are earning in a tax year as your pension will be considered part of your earnings, they have a tax rate system similar to the UK - the more you earn the more you move up the tax brackets. You will have to pay tax on it in one country though and if you are a Permanant resident in Oz it should be there. there is no getting around this as to claim nil tax on it in the UK, the UK Tax authorities will inform the Oz tax authorities. You will not have to pay tax on your gratuity though, so it may make sense to fully commute to take a bgger tax free lump sum, but then you will get a smaller monthly pension payment that will be taxed. Only you can make this decision and you will simply have to sit down and do the math and work out how much you will lose or gain over the specified period. This is for information only and is not intended as legal, financial or tax advice. Years: Roscoe, you can not transfer your pension years across as far as I know, but it would submitting an i-support enquirey on JPA to the JPAC team who should get you an answer. However, the type of pension you have (AFPS 75 or AFPS 05) and the amount of years that you have done (and in the case of AFPS 05, your rank/rate) will determine when you can start getting a pension and how much - again, put in a seperate i-support on JPA for a pension forcast (you are allowed one a year) and it will detail what you will get and when - or of course speak to your Admin gurus. One piece of good news though, your years in the RAF may count towards your RAAF superannuation (pension) for incremental progression. Hope this helps Chris Link to comment Share on other sites More sharing options...
Guest Ady and David Posted June 15, 2008 Share Posted June 15, 2008 Excellent Post - I leave the Navy in August after my 22 - Our Sea time counts towards their Sea time - All I have to do is obtain a letter from our HR department to state what Medals I've got and the amount of sea time I've completed. For info it is $25000 PA for the top bracket. A Colleague is already in their Navy and he keeps his pension in the UK. He did get a TAX bill this year though so be aware. David Link to comment Share on other sites More sharing options...
Elaine&Chris Posted June 15, 2008 Share Posted June 15, 2008 Hi Ady, You can leave your pension in the UK (that is what I intend to do) but you should declare it to the Ozzies. I know of a couple of cases where people have joined the RAN, not declared their pension and got caught. I suppose it depends on how much risk you want to take. I intend to fully commute and therefore reduce my monthly payment so I will have less to add to my earnings from the RAN to declare to the Tax man. I did the math and up to the age of 55 (when it reverts back to full payment monthly) I will not be any worse off - all depends on what tax bracket you fall into of course. Either way, as they say two things you can't avoid - death and taxes! Link to comment Share on other sites More sharing options...
Guest Ady and David Posted June 15, 2008 Share Posted June 15, 2008 Hi Ady,You can leave your pension in the UK (that is what I intend to do) but you should declare it to the Ozzies. I know of a couple of cases where people have joined the RAN, not declared their pension and got caught. I suppose it depends on how much risk you want to take. I intend to fully commute and therefore reduce my monthly payment so I will have less to add to my earnings from the RAN to declare to the Tax man. I did the math and up to the age of 55 (when it reverts back to full payment monthly) I will not be any worse off - all depends on what tax bracket you fall into of course. Either way, as they say two things you can't avoid - death and taxes! Chris What Branch are you going as? Where are you heading and when? I am looking at sept in Watson in Sydney:swoon: Link to comment Share on other sites More sharing options...
Guest Ady and David Posted June 15, 2008 Share Posted June 15, 2008 Hi Ady,You can leave your pension in the UK (that is what I intend to do) but you should declare it to the Ozzies. I know of a couple of cases where people have joined the RAN, not declared their pension and got caught. I suppose it depends on how much risk you want to take. I intend to fully commute and therefore reduce my monthly payment so I will have less to add to my earnings from the RAN to declare to the Tax man. I did the math and up to the age of 55 (when it reverts back to full payment monthly) I will not be any worse off - all depends on what tax bracket you fall into of course. Either way, as they say two things you can't avoid - death and taxes! Chris What Branch are you going as? Where are you heading and when? I am looking at sept in Watson in Sydney:swoon:Dave Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted June 15, 2008 Share Posted June 15, 2008 Hi CHRIS, YOU SOUND LIKE A REAL EXPERT ON PENSIONS. MY SITUATION IS DIFFERENT I AM 18 YRS AWAY FROM RETIRING FROM BEING A NURSE AND I HAVE BEEN UNOFFICIALLY TOLD THAT THE OZ GOVERNMENT CAN TAKE UP TO 40% OF MY PENSIONS POT SAVINGS NOW, DOES THIS SOUND CORRECT. I EXPECT TO HAVE A PENSION ON RETIREMENT OF ABOUT £15,000 OR $30,000 OZ DOLLARS, AT TODAYS RATE, PLUS MY GRATUITY. IF I LEAVE IT HERE IN THE UK WITH THE NHS WILL THE OZ GOVERNMENT HAVE ANY CLAIM ON IT. OR WILL I BE FORCED TO TAKE IT WITH ME AND DECLARE IT, MY HUSBAND IS EXACTLY IN THE SAME POSITION. CHEERS FOR ANY HELP YOUR INFO WAS EXCELLENT, HELEN. SORRY FOR TAKING OVER YOUR ENTRY ROSCOE. Link to comment Share on other sites More sharing options...
Elaine&Chris Posted June 15, 2008 Share Posted June 15, 2008 Hi Helen, Unfortunately i can not make any claim to know anything about NHS pensions, however, as it is still classed as a government pension, I would give the number i quoted on the previous thread a ring. As always with these sort of things, a little bit of knowledge is a dangerous thing and people (meaning well) often make broad brush statements. You could well be taxed 40% on your pension, but only if you are earning the requisite amount in Oz to push your overall earnings (including pension) into that tax bracket. Even then, you will not be paying 40% just on your pension, but 40% on your overall earnings for that tax year (just as in the UK). The oz tax man can only tax you on what you declare to him - or what he discovers you earn - whichever is sooner. he can not make a claim on your gratuity and I would not declare it to him. But he can lay a claim to tax your pension once you are in Oz and paying taxes, but only within your tax bracket. This only applies to an immediate pension, or when your pension is actually paid out. I do not believe that you can be taxed on a pension that is "preserved" as it is not adding to your earnings until you are physically recieving payments into your bank account and is non-contributory (the Forces on e is, but I do not know if the NHS pension is non-contributory or not) I know that we in the services (Crown, Government, Emergency etc) often put up with lowish wages for a good pension and are therefore incensed when we think that someone is trying to take some of it. However, when you consider that the nil tax status arrangement in the UK if Oz charge tax is only available on Government Pensions, I do not think that we are doing too bad. For example, if it was your State Pension, the UK would Tax you on about 10ish% and the Ozzies would still tax it as income. If it was a Private Pension, the Uk would tax it at 20ish% and the Ozzies would still tax it as income - so actually, we are being looked after. As ever, this post is as a general guide only and does not constitute legal, financial, pension or tax advice. Chris Link to comment Share on other sites More sharing options...
Elaine&Chris Posted June 15, 2008 Share Posted June 15, 2008 Hi Ady and David, I am a SD Loggie Officer going to Canberra, flying out the 4 Sep 08 - everything arranged, just sitting around waiting for the Taxi to the airport! Link to comment Share on other sites More sharing options...
Guest Ady and David Posted June 15, 2008 Share Posted June 15, 2008 Hi Ady and David, I am a SD Loggie Officer going to Canberra, flying out the 4 Sep 08 - everything arranged, just sitting around waiting for the Taxi to the airport! Nice One Chris Good luck in your New Job. Link to comment Share on other sites More sharing options...
Elaine&Chris Posted June 15, 2008 Share Posted June 15, 2008 Nice One Chris Good luck in your New Job. And to you mate, if you need any steers once the visa comes through on the next stage (Australia House etc) just PM me at the time. Chris Link to comment Share on other sites More sharing options...
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