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Transferring NHS pension to Australia


Guest Stevieboy22

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Guest Stevieboy22

Hi,

 

I'm sure this question has been asked before but I don't seem to be able to find a thread about pension transfers as yet.

 

What I am wanting to know is whether or not myself and my wife would be better off transferring our NHS pensions to a similar scheme in Australia or leaving them here? We are moving to Melbourne in August and I have a job in a hospital in Melbourne. I'm not really sure what the pension/super scheme on offer is or really what we should do for the best.

 

We have been in contact with a pension agent but not yet comitted to anything.

 

Any help would be greatly appreciated.

Cheers

Steve

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Guest guest30038

Left ours there. The transfer fee was prohibitive.............pushing 4k to transfer 11 yrs contributions. The NHS is not (for Australian purposes) a 'recognised' scheme either.

 

kev

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Hi there

 

Depends on whether you are transferring into a QROPS qualifying pension or not. Also, if you do decide to transfer, make sure you do it in the first 6 months as then its tax free. Most UK pension schemes are now eligible for this but if you transfer into a non QROPS scheme then the tax is somewhere between 40-55%. I work for a financial planning company and we do this quite often for clients - its not nearly as tricky as its made out and the HMRC website does talk you through it pretty well.

 

This might help:

 

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Transfer_Out_Factsheet.pdf

 

http://www.australiansuper.com/resources.ashx/formsandpublications/316/File/05A0E08827FC5D54922D9FF16C2814F9/QROPS.pdf

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Guest guest30038
Hi there

 

Depends on whether you are transferring into a QROPS qualifying pension or not.

 

The NHS pension scheme is not recognised for QROPS purposes.

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The NHS pension scheme is not recognised for QROPS purposes.

 

 

QROPS is not about the UK pension side of things. Its about the destination pension fund. The UK Pension has to go into a QROPS qualifying pension/super fund. The NHS pension fact sheet I attached in my earlier post explains that the NHS pension CAN be transferred into a QROPS pension. Please see below for a list of eligible Australian pensions.

 

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

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Guest Stevieboy22

I just spoke to NHS pensions and they told me that if I was to transfer to one of the QROPS schemes in Australia there would be no problem and no charge. I would have to get which ever scheme I joined in Australia to request the transfer and that NHS pension would calculate a cash equivalent tranfser.

 

I guess its gonna take a bit of research once in Australia to find the best fund to pay into but knowing that it shouldn't be as complicated as I 1st thought makes it a litlle less stressful. :biggrin:

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I'd suggest you got some proper advice - your NHS pension is essentially guaranteed. Cash that in for a lump sum and you are gambling on the stockmarket turning that lump sum into something that could generate a pension and that's an unknown.

 

I guess it depends on how long you've been in the NHS scheme and what amount your current contributions would pay when you retire.

 

I think that once in an Oz 'super' you cannot take benefits until you are 55 - if it doesn't work out for you in Oz and you decide to leave before then, the ATO will help themselves to a huge chunk of your fund.

 

It is not straightforward, but in this day and age, I don't think there are many compelling arguments for turning a final salary based fund into a stock market gamble.

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Guest guest30038
QROPS is not about the UK pension side of things. Its about the destination pension fund. The UK Pension has to go into a QROPS qualifying pension/super fund. The NHS pension fact sheet I attached in my earlier post explains that the NHS pension CAN be transferred into a QROPS pension. Please see below for a list of eligible Australian pensions.

 

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

 

Sorry. The assumption (by me) [slaps wrist] was that as an NHS pension was mentioned, it may be that the Op would join a similar fund provided by the health service here. I jumped the gun thinking of QSuper in the back of my nicotine deprived brain. IOW, I do know that Q super is not a QROPS fund and that many ex NHS employees now working in Qld health are rather plssed off about that.

 

 

My apologies for misleading info

 

kev

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  • 2 weeks later...
Guest RN2068

Hey surflen22 - can you recommend anyone to get advice from re pension transfers for individuals over 60 from UK to Oz? Thanks (fellow Scottish Highlander!)

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It depends on whether or not you've already started taking payments - if you have, then it can't be done. If you haven't then its a fairly simple procedure. Most of the UK pension have withdrawal forms that allow you to specify where its headed - just check the QROPS list to be sure :-)

 

Where in the Highlands are you from?

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Guest RN2068

No, not started taking payments and still in UK - just wanted to find out if you knew of any good advisors to help with planning whether or not to transfer pensions, and when etc. Parents are over 60. I've heard some horror stories so want to make sure they get the right advice.

Re Scottish Highlands, I'm from Inverness:smile:

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If they are over 60 then it can be transferred very easily and tax free. They need to have a pension/super fund set up in Australia first of all though and it needs to be QROPS complying. Then all they'll need are the appropriate forms from the UK fund and the account number for the OZ one...it SHOULDN'T be a difficult process. I'd suggest you get hold of the forms first then decide if you think you'll need some guidance.

Depending on your location in Australia, the FPA did offer an "ask the expert" forum on their website which essentially gives free advice - I'm not sure if its still going or not but there are contact details for financial advisors and with most of them the first meeting is free. The site is www.fpa.asn.au

 

I lived in Inverness for 3 years...still have 2 sisters there. One in Inshes and the other in Lochardil. Not been back for a while though!

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Hi

 

I would suggest that your parents take financial advice for their individual situation as it really can be a complex process and there are lots of intricate details that can impact on things.

 

If your parents are thinking about taking payments from the scheme soon then extra care has to be taken to ensure no breaches occur.

 

They need to fully understand what they will be giving up as well, as a transfer may not be in their interests.

 

You should also deal with an Adviser that has full knowledge of both the UK and the Australian Superannuation/Pension systems and that will charge for their work regardless of whether a transfer occurs or not, not someone just looking to transfer to secure the business as of course they will suggest that a transfer is the right thing.

 

It can seem like just some paperwork involved but believe me there is far more too it than just administration.

 

Regards

 

 

Andy

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Spotted this thread and thought i'd post as I need some advice really. I dont really know anything about pensions (typical woman eh?? lol). Anyway, i've only worked for the NHS for just under three years and been paying into pension during this time, i've never had a pension before (now aged 37) as financially couldnt afford, studying etc. Anyhow, just wanted to know what happens with the pension payments that i've paid in, we move in 6 weeks to Adelaide. Do I have to do anything? Who do I contact? What would you think be my options?

 

Thanks

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Spotted this thread and thought i'd post as I need some advice really. I dont really know anything about pensions (typical woman eh?? lol). Anyway, i've only worked for the NHS for just under three years and been paying into pension during this time, i've never had a pension before (now aged 37) as financially couldnt afford, studying etc. Anyhow, just wanted to know what happens with the pension payments that i've paid in, we move in 6 weeks to Adelaide. Do I have to do anything? Who do I contact? What would you think be my options?

 

Thanks

 

 

Hi

 

 

No you do not have to do anything, once you get to Adelaide (good choice BTW!!) then just make sure you contact NHS Pensions and inform them of your new address.

 

Regarding the Pension, it is possible to transfer the fund to an Australian Superannuation scheme and that is something you may wish to consider once you been in Australia for a while.

 

Failing that you will still receive the annual pension benefits upon the schemes retirement age. The benefits that you have accrued up to now will be indexed with the cost of living as measured by Consumer Prices Index (CPI).

 

Hope this helps.

 

Regards

 

 

Andy

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Guest Guest31881
Spotted this thread and thought i'd post as I need some advice really. I dont really know anything about pensions (typical woman eh?? lol). Anyway, i've only worked for the NHS for just under three years and been paying into pension during this time, i've never had a pension before (now aged 37) as financially couldnt afford, studying etc. Anyhow, just wanted to know what happens with the pension payments that i've paid in, we move in 6 weeks to Adelaide. Do I have to do anything? Who do I contact? What would you think be my options?

 

Thanks

 

All you have to do is keep NHS pensions up to date with your address and your next of kin.

 

Unfortunately the three years you have worked for NHS will not have accrued you a very big pension and if you think of transfering it to Australia look into it carefully because the small amount you have could be eaten up by charges and fees.

 

If you are still employed by the NHS ask your "pay office" who is your pensions officer and ask to speak to them, You can get all the books and info you need from him/her about future rights with the pension.

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  • 2 years later...
  • 2 years later...
Did you get this sorted? I'm thinking of moving to a consultant job in Brisbane,,aged 50, so my pension pot is fairly large, and too much to risk losing...

 

Hello Caidoz99

 

Are referring to an NHS pension (I know that is the title of the thread but just checking)?

 

Andy

Edited by Andrew from Vista Financial
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Did you get this sorted? I'm thinking of moving to a consultant job in Brisbane,,aged 50, so my pension pot is fairly large, and too much to risk losing...

 

Are you thinking of staying in Australia permanently?

Weve had two spells in Australia (my husband is a consultant), but left his NHS pension in the UK. We're back in the UK now and he's about to retire (Mental Health Officer status means he can go at 55). He has been able to use some of his overseas years to count towards his 'doubling up' years which has added considerably to what he'll receive each year. If the overseas work is predominantly clinical, as opposed to research/management/teaching, then, at the moment, it's likely to be counted. At least the years that my husband spent in a mostly clinical post has been.

 

A friend of ours stayed in Australia and has taken her money out of the NHS scheme as she has no intention of coming back here before retirement. It's a considerable sum, but because the rules have changed she doesn't seem able to do anything with it, so it's just sitting there. I don't know enough about the changes to know why, but she wishes now she'd left it here.

 

The BMA have been really helpful to us, so I'd recommend asking them for advice as well as advisors who have experience of these situations as there is so much to consider.

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