MarkLesinoz Posted November 19, 2014 Share Posted November 19, 2014 Hi My wife is transferring her NHS pension into An Australian QROPS super account. At some point she is going to have to pay the ATO a certain amount of tax on the growth the pension has made since we became residents in Australian back in Sept 2008. My question is How do you determine growth in something that does not in my mind actually grow in monetary terms? The pension does not accumulate in value. It simply guarantees to pay an amount based on your final salary. Surely that doesn't grow in any way. But I am told the ATO do not view it like that. Does anyone know how the calculation is made? Thanks in advance for any help. Mark Link to comment Share on other sites More sharing options...
marcozambini Posted November 23, 2014 Share Posted November 23, 2014 I'd be interested in anyone's knowledge on this too. We're just deciding whether to move my teachers pension and my wife's NHS pension with QROPS Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 23, 2014 Share Posted November 23, 2014 Hi My wife is transferring her NHS pension into An Australian QROPS super account. At some point she is going to have to pay the ATO a certain amount of tax on the growth the pension has made since we became residents in Australian back in Sept 2008. My question is How do you determine growth in something that does not in my mind actually grow in monetary terms? The pension does not accumulate in value. It simply guarantees to pay an amount based on your final salary. Surely that doesn't grow in any way. But I am told the ATO do not view it like that. Does anyone know how the calculation is made? Thanks in advance for any help. Mark Hi In our experience the ATO are happy to work on the basis of the increase in benefits for that period of time (generally arrival in Australia to transfer of monies in) and apply the same increase to the transfer amount so as to determine the Applicable Fund Earnings (AFE). I would advise that you obtain a Private Ruling directly from the ATO. Regards Andy Link to comment Share on other sites More sharing options...
MarkLesinoz Posted January 31, 2015 Author Share Posted January 31, 2015 Thanks Andy. So if there has been no increases in benefit from the NHS pension scheme in the period of time between coming to Australia and having the transfer amount transferred to Australia because an NHS government pension is a defined benefit pension and the benefits do not change. Would I therefore be correct in thinking there can not be any increase in its value and therefore no Applicable Fund Earnings (AFE)? Link to comment Share on other sites More sharing options...
MarkLesinoz Posted January 31, 2015 Author Share Posted January 31, 2015 Hi Marco Did you find out any more about this via your own enquiries????? Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 2, 2015 Share Posted February 2, 2015 Hi The benefits increase from the date of leaving service until normal pension age by inflation annually. Generally the measure is now CPI previously it was RPI but changed around October 2010. As evidence of this, if your wife looks at the CETV statement that was produced when she received the transfer pack it would detail the benefits as at date of leaving and the current benefits as at the date the statement was produced, you'll note an increase between the two (assuming she did not transfer when she left service). Regards Andy Link to comment Share on other sites More sharing options...
akiralx Posted February 2, 2015 Share Posted February 2, 2015 Yes Andrew is correct ^^^ - increases on deferred benefits now only CPI, sadly. I used to administer the Local Government Pension Scheme for many years, and the indexation is identical AFAIK. Link to comment Share on other sites More sharing options...
MarkLesinoz Posted February 2, 2015 Author Share Posted February 2, 2015 Hi Andrew. Thanks for your reply. My wife left NHS employment in July 2000 and took up other UK employment. We became Australian residents in Sept 2008 and want to transfer the NHS pension now. We received notification from the NHS of the transfer value of $203,000 but no notification of what the value was either in July 2000 when she left NHS employment or Sept 2008 when we came to OZ. How would we find out this cash equivalent transfer value? and is it the 2000 value or the 2008 value we need. The only other figure we received with the notification was (Post 1997 value) which it say was 43,000 Regards Mark Link to comment Share on other sites More sharing options...
MarkLesinoz Posted February 2, 2015 Author Share Posted February 2, 2015 Hi Andrew. Thanks for your reply. My wife left NHS employment in July 2000 and took up other UK employment. We became Australian residents in Sept 2008 and want to transfer the NHS pension now. We received notification from the NHS of the transfer value of $203,000 but no notification of what the value was either in July 2000 when she left NHS employment or Sept 2008 when we came to OZ. How would we find out this cash equivalent transfer value? and is it the 2000 value or the 2008 value we need. The only other figure we received with the notification was (Post 1997 value) which it say was 43,000 Regards Mark Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 3, 2015 Share Posted February 3, 2015 Hi Andrew.Thanks for your reply. My wife left NHS employment in July 2000 and took up other UK employment. We became Australian residents in Sept 2008 and want to transfer the NHS pension now. We received notification from the NHS of the transfer value of $203,000 but no notification of what the value was either in July 2000 when she left NHS employment or Sept 2008 when we came to OZ. How would we find out this cash equivalent transfer value? and is it the 2000 value or the 2008 value we need. The only other figure we received with the notification was (Post 1997 value) which it say was 43,000 Regards Mark Hi Mark I have replied to your PM. Link to comment Share on other sites More sharing options...
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