Devonuk Posted January 14, 2019 Share Posted January 14, 2019 My husband is a serving police officer in the uk. Currently paying into police pension. Looking at possibly moving to Australia, and possible career change. Has anyone ever transferred their police pension to a super fund and then continued on paying in to the fund with new job? I’m aware the super fund has to be QROPS registered for the uk pension to be transferred to super fund but unsure how to go bout transferring a police pension or if it’s even possible? Has anyone successfully left British police and started new career in oz and kept their pension going? Thanks in advance. Any advice would be appreciated on your experience and where to get financial advice ref this matter. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 Until very, very recently, there were no QROPS registered funds in Australia. I believe one has just been, or is about to be, approved at long last. However, it's very important to get professional advice because he could get hammered for tax if you go about it the wrong way. Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 Thanks for your reply. Is that QROPS fund that will accept Brit police pension? As there are loads of QROPS funds in oz that show up on the HMRC site. We only need 1 fund that will accept his police pension so fingers crossed! Thanks Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 11 minutes ago, Devonuk said: Thanks for your reply. Is that QROPS fund that will accept Brit police pension? As there are loads of QROPS funds in oz that show up on the HMRC site. We only need 1 fund that will accept his police pension so fingers crossed! Thanks I'm pretty sure that is out of date, they all got suspended. There is a new one coming out but like I said, don't assume it's going to be an easy process and you just transfer the money. It would be worth hiring someone like Andrew to guide you through the process. 1 Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 Thank you so much for your advice and recommendation. I’ll take it onboard. So daunting as just don’t know where to start! Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 (edited) 7 minutes ago, Devonuk said: Thank you so much for your advice and recommendation. I’ll take it onboard. So daunting as just don’t know where to start! TBH I think worrying about transferring the pension should be a low priority. He won't lose the money if he doesn't transfer it, it will still be sitting in his UK pension fund earning interest until you're ready. Then you can transfer it once you're settled. The new QROPS fund isn't up and running yet anyway. Edited January 14, 2019 by Marisawright Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 Thank you, just trying to think of everything I need to look into before we make the final decision to definitely move. Appreciate your quick reply Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 22 minutes ago, Devonuk said: Thank you, just trying to think of everything I need to look into before we make the final decision to definitely move. Appreciate your quick reply I believe you will save tax by transferring within six months of arriving in Australia but you do have that window. One of the big things I'd be checking is housing affordability, depending on which city you're moving to. House prices have surged to a ridiculous degree in the last couple of years in the Eastern states. Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 We will be living in my parents house so housing no issue for us for a while. Quote Link to comment Share on other sites More sharing options...
Quoll Posted January 14, 2019 Share Posted January 14, 2019 Wait until you've decided you like it in Australia because should you decide you want to return to UK your pension can't return with you - should it come to that. Wouldn't be rushing into it. 1 Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 Thanks for your reply. I’m Australian and visit very often, so quite happy that we know what it’ll be like. As it’s a police government pension they will want to know when we leave what to do with it. Frustrating Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 I just thought of something, as it’s a public sector pension it might even be better to leave it, I remember seeing a post from someone else. Make sure you get professional advice 2 Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 14, 2019 Author Share Posted January 14, 2019 Thank you for that I will definitely be getting advice. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted January 14, 2019 Share Posted January 14, 2019 Hello DevonUK Marisa's memory serves here correctly. In April 2015 HMRC banned transfers out of government un-funded defined benefit schemes such as NHS, Police and Teachers Pension. Effectively meaning that from this date these schemes are unable to be transferred to Australia. Your Husband does not lose his entitlements, he will still be able to take the benefits at his scheme retirement age. Typically these benefits are able to be paid gross from the UK and they are then to be declared in Australia for tax purposes. Hope this helps Regards Andy 1 Quote Link to comment Share on other sites More sharing options...
Perthbum Posted January 14, 2019 Share Posted January 14, 2019 10 hours ago, Devonuk said: Thank you for that I will definitely be getting advice. Will he be able to rejoin the police force in the UK if you decide to return? might be an idea to leave pension in situ for a while. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 14, 2019 Share Posted January 14, 2019 10 minutes ago, Perthbum said: Will he be able to rejoin the police force in the UK if you decide to return? might be an idea to leave pension in situ for a while. Andrew just replied that he won't have the option, police pensions can't be transferred so he'll have to leave it whether he likes it or not! Quote Link to comment Share on other sites More sharing options...
NicF Posted January 14, 2019 Share Posted January 14, 2019 14 hours ago, Devonuk said: Thanks for your reply. Is that QROPS fund that will accept Brit police pension? As there are loads of QROPS funds in oz that show up on the HMRC site. We only need 1 fund that will accept his police pension so fingers crossed! Thanks Most of the QROPS funds that show up for Australia are Self Managed Super Funds (SMSFs). Quote Link to comment Share on other sites More sharing options...
Perthbum Posted January 15, 2019 Share Posted January 15, 2019 33 minutes ago, Marisawright said: Andrew just replied that he won't have the option, police pensions can't be transferred so he'll have to leave it whether he likes it or not! if you rejoin the pension can be frozen until you return, might lose a few years but if its index linked its worth keeping in in the pot, depends when he joined as many are not index linked these days. Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 15, 2019 Author Share Posted January 15, 2019 Thank you everyone for your massive help. At least I know now he will have to freeze his police pension, he’s been paying into it for 14 years. If he stayed in the job he would be able to retire at 56, but by leaving and freezing it he would access it at 60. If you started a super fund in oz from age 40 would retiring at age 60 give you much at all or a negligible amount? Would be on a 6 figure salary, 11% super. Cause he would get his police pension from the UK at age 60 too. So would get the super and the police. Or would he have to work till 65? Trying to see whether we’d be better off in retirement staying in uk or going to oz. don’t want to move if it’s going to make us much worse off! Thanks Quote Link to comment Share on other sites More sharing options...
MicknMary Posted January 15, 2019 Share Posted January 15, 2019 Hello, I've only posted here once before, so I hope I'm in the right place with a query I have about my NHS Pension please, apologies if not. I've now been living in Australia for 4 years and in August 2016 on my 60th birthday I took my benefits from my NHS Pension. I received a lump sum and received it into my UK Bank account as a tax free lump sum which is how I was expecting to receive my NHS Pension. I also receive a small monthly income from my NHS Pension and obviously have to pay Australian tax on that. My query is that I have now completed my Australian Tax Office return and I declared that lump sum which I was legally required to do. I was very surprised to then receive a tax bill from the ATO in respect of that lump sum which I thought was tax free and I am now having to pay this to the ATO. Has anyone else with an NHS Pension had this problem please?. I was assured by the tax agent who completed my tax return at the time that this is correct under the Australian tax law. Is that correct? Thanks, MicknMary Quote Link to comment Share on other sites More sharing options...
rammygirl Posted January 15, 2019 Share Posted January 15, 2019 Yes the lump sum is taxed in Australia even if you never transfer the cash. There are some ways you can mitigate this but you need an accountant not a tax agent to advise if this is still possible. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted January 15, 2019 Share Posted January 15, 2019 Hi MicknMary (my Dad and Mums names!) I suspect that the Agent has included 100% of the lump sum in your total income, if so then this is not how UK pension lump sums should be assessed. The correct way of doing this is typically by assessing the growth element only, that being the increase in value between becoming Australian Resident and receipt of the lump sum (using the value in pounds and converting to Dollars on receipt of money). If this is not the way the Agent has done this then you’ve probably been asked to pay too much tax by the ATO and you should go back to him. Tell him to look up treatment on foreign super benefit payments instead Regards Andy 1 2 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 15, 2019 Share Posted January 15, 2019 1 hour ago, Devonuk said: Thank you everyone for your massive help. At least I know now he will have to freeze his police pension, he’s been paying into it for 14 years. If he stayed in the job he would be able to retire at 56, but by leaving and freezing it he would access it at 60. If you started a super fund in oz from age 40 would retiring at age 60 give you much at all or a negligible amount? Would be on a 6 figure salary, 11% super. That's 20 years of contributions. I'm sure there are calculators somewhere that would let you work out the figure. How does the police pension work? Is he guaranteed a certain amount of pension till the day he dies, even if he retires at 56? If so, then maybe staying in the UK is worth considering. Superannuation doesn't pay you a set pension. When you retire you've got a pot of money sitting in your superannuation fund, and it's up to you to work out how to make it last until you die. If you give yourself too generous a monthly pension and the money runs out, too bad! Quote Link to comment Share on other sites More sharing options...
Devonuk Posted January 15, 2019 Author Share Posted January 15, 2019 1 hour ago, Devonuk said: Thank you everyone for your massive help. At least I know now he will have to freeze his police pension, he’s been paying into it for 14 years. If he stayed in the job he would be able to retire at 56, but by leaving and freezing it he would access it at 60. If you started a super fund in oz from age 40 would retiring at age 60 give you much at all or a negligible amount? Would be on a 6 figure salary, 11% super. Cause he would get his police pension from the UK at age 60 too. So would get the super and the police. Or would he have to work till 65? Trying to see whether we’d be better off in retirement staying in uk or going to oz. don’t want to move if it’s going to make us much worse off! Thanks Thank you I believe the police pension gives him a tax free lump sum, then pays a monthly figure until death. I’ll see if I can check out some super calculators. Thank you Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted January 15, 2019 Share Posted January 15, 2019 20 minutes ago, Marisawright said: That's 20 years of contributions. I'm sure there are calculators somewhere that would let you work out the figure. How does the police pension work? Is he guaranteed a certain amount of pension till the day he dies, even if he retires at 56? If so, then maybe staying in the UK is worth considering. Superannuation doesn't pay you a set pension. When you retire you've got a pot of money sitting in your superannuation fund, and it's up to you to work out how to make it last until you die. If you give yourself too generous a monthly pension and the money runs out, too bad! Then you get the Aussie pension, which is pretty reasonable I reckon. Quote Link to comment Share on other sites More sharing options...
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