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Guest Francine

Teachers' Pensions

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Guest Francine

I am hoping there are some teachers out there who might be able to help me. We have finally sold our house (hooray) and are planning the big move in the new year.

 

I have been teaching in the UK for 10 years and have paid into my pension during that time. What happens to that money when I leave the UK? Can I transfer it over to a teachers pension scheme in Oz? If so, how do I go about this? Any advice would be much appreciated x

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You can either leave it in the TP scheme (probably not the best idea given the way things are going...), or you can transfer it over to your choice of Super fund in Australia. I'm not 100% sure exactly how to do it on your own, I would assume from my investigations you fill out the paperwork yourself (it looks pretty straightforward when I glanced through it, name & details, TP details, fund its going to details etc) once you've got a Superannuation fund set up in Oz and they transfer it over for you. However I haven't actually done it myself yet (hence not being 100%) (and as I only have a tiny amount in there, really pitiful as I didn't pay in for lots of reasons for quite a few years, I'm not sure exactly what we will do yet), I don't know if you actually can do it yourself, or if you have to use one of these transfer agencies or not, which obviously take a fee for doing it for you. If you contact TP (I would phone them, email enquires literally can take months for them to respond to) they can send the forms out to you, or they should be available on the website as well.

 

As long as its a recognised Super fund in Oz, there won't be any issues with you getting the money out there though, you have the option to use a Pension transfer agent, or possibly do it yourself. Whilst its sitting in the UK it won't go anywhere though, so you don't have to panic too much - I'm not sure how the intended changes in April will make a difference to your pot, or whether they will even come in then - it all seems a bit up in the air.

 

Hope that makes some sort of sense :)


Moved on a 179 PR visa Feb 2012; Citizenship granted Jan 2016. Settled in Adelaide. Loving it and feel like everyday is paradise compared to life in the UK.

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Guest Francine
You can either leave it in the TP scheme (probably not the best idea given the way things are going...), or you can transfer it over to your choice of Super fund in Australia. I'm not 100% sure exactly how to do it on your own, I would assume from my investigations you fill out the paperwork yourself (it looks pretty straightforward when I glanced through it, name & details, TP details, fund its going to details etc) once you've got a Superannuation fund set up in Oz and they transfer it over for you. However I haven't actually done it myself yet (hence not being 100%) (and as I only have a tiny amount in there, really pitiful as I didn't pay in for lots of reasons for quite a few years, I'm not sure exactly what we will do yet), I don't know if you actually can do it yourself, or if you have to use one of these transfer agencies or not, which obviously take a fee for doing it for you. If you contact TP (I would phone them, email enquires literally can take months for them to respond to) they can send the forms out to you, or they should be available on the website as well.

 

As long as its a recognised Super fund in Oz, there won't be any issues with you getting the money out there though, you have the option to use a Pension transfer agent, or possibly do it yourself. Whilst its sitting in the UK it won't go anywhere though, so you don't have to panic too much - I'm not sure how the intended changes in April will make a difference to your pot, or whether they will even come in then - it all seems a bit up in the air.

 

Hope that makes some sort of sense :)

 

 

Thanks for the advice, it is much appreciated. Are you teaching in Oz? Where abouts are you?

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Guest The Ropey HOFF

The wife and i have almost 50 years worth of pensions she's a ward sister and i'm a prison officer and this is what we had decided to do, we were going to leave them here because they are in good final salary pension schemes and would be frozen, we didn't like the look of drawing them out and taking a risk with them anywhere else.

 

You only have 10 years in so its not as great a risk or issue and if can transfer it over to the Oz teachers pension, then it might be worthwhile, but my advice is speak to a financial advisor.

 

Best of luck.

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Leave it where it is until you are sure that you are going to be in Australia for the long haul - you have 6 months to decide to move it without penalty and even if you move it after that, unless it grows significantly you wouldnt have to worry about any tax penalties. Once it is in Australia and you have permanent residency then you cant take it out of Aus again until you reach retirement age

 

Check out with an independent tax advisor whether it is worth chucking in a final salary scheme for the more variable schemes you are likely to meet in Australia. Also check out with your state as to whether you would be able to transfer funds into a state scheme - you certainly couldnt at one time when they were final salary based funds and all the states have different schemes for their public servants.

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Guest Francine
Leave it where it is until you are sure that you are going to be in Australia for the long haul - you have 6 months to decide to move it without penalty and even if you move it after that, unless it grows significantly you wouldnt have to worry about any tax penalties. Once it is in Australia and you have permanent residency then you cant take it out of Aus again until you reach retirement age

 

Check out with an independent tax advisor whether it is worth chucking in a final salary scheme for the more variable schemes you are likely to meet in Australia. Also check out with your state as to whether you would be able to transfer funds into a state scheme - you certainly couldnt at one time when they were final salary based funds and all the states have different schemes for their public servants.

 

Thanks for your advice. We already have permanent residency. I think I will do as you advise and speak to a tax advisor - so much to think about!!!

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Hi, I have been here for appx 3 years now but used to work in financial services in the UK for nearly twenty years. In terms of your teachers pension, someone else is correct in that it will be a final salary scheme so think very carefully before you do decide to transfer as you will be giving up something that is guaranteed for a pot of money that you will have to invest for yourself. The other downside at the moment is the fact that the currency (aussie dollar) is as strong as it is because if you did transfer you are effectively moving it at a point where the dollar has been as strong as it has been for a very long time (thats not to say it couldn't get worse if the UK ecomony keeps getting worse !)

 

 

You can get a financial planner in the UK to do something called a transfer analysis which will work out what the % return you would need pa to achieve the guarteed benefit you are giving up in the UK, there are of course many many other considerations with it all.

 

 

My advice be would be to see a planner but just try to shop around a bit because there are alot of poor advisers here when it comes to advice on QROPS transfers from the UK.

 

 

You do have 6 months to transfer after becoming resident but if you don't the ATO (if they find out) can tax you on the growth of the fund from when you become resident until you transfer or take benefits, worse case scenario you can opt for the fund to pay the tax on this which is 15%.

 

You can ask your scheme in the UK to do a transfer quote which they are obliged to give you and this then normally guarantees the transfer value for three months, take care here though because they are only obliged legally to do this for you once a year and if you ordered one and then didn't transfer within 3 months your transfer value wouldn't be guaranteed so it could be lower or higher depending on various factors.

 

 

Hope this helps and I haven't confused the matter further !

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Thanks for the advice, it is much appreciated. Are you teaching in Oz? Where abouts are you?

 

Sorry for the late reply - no, we're not there yet, we fly out in Feb :) I don't know to be honest if I'll teach out there - I'm more than a bit disillusioned by the whole industry here, and apprehensive that it may well go/have gone the same way down under. However, it will be a way of having money coming in to begin with at least, so I guess I will do all my rego stuff and try and get relief work for a while to make my mind up. I'll also try and experience all areas, as I've had a bit of a varied (chequered? lol) teaching career here in the UK so have done Secondary, Primary and Severe Special Needs schools for chunks of time so hope I could turn my hand to all of those in Oz as well.

 

I won't be doing it for a bit though, as we're off travelling Oz for 6-12 months first to make up for the fact we haven't had a holiday for about 10 years lol. When we do settle down it will be in SA, probably Adelaide to start with because of relief and there being more schools obviously in that area, but will see what happens in the long term - its a new start so we're not really ruling anything out, time to clear the decks and perhaps change everything :)

 

Do you know where you are off to?


Moved on a 179 PR visa Feb 2012; Citizenship granted Jan 2016. Settled in Adelaide. Loving it and feel like everyday is paradise compared to life in the UK.

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Guest Guest31881

Hi,

 

As others have said take expert advice, but remember it is easier to transfer from the UK to Australia than Australia to the UK. If you transfer your pension and then decide Australia is not for you, it could be a very costly process to try and get your pension back to the UK..

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Guest Francine

Thank you for all the advice and help - it is very much appreciated! There is so much to consider; my head is already swimming and we are not moving over until August 2012!!!

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Hi Francine, Good luck with it all and let me know via PM if you want any other help etc at any stage. Mark

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Guest Francine
Hi Francine, Good luck with it all and let me know via PM if you want any other help etc at any stage. Mark

Thank you Mark. Your advice was really useful - I might take you up on your offer!!

 

Where are you based in Oz? Any regrets about moving over there? I just want the best life possible for us as a family, especially our kids (aged 6, 2 and a half and 5 months) so I do worry that we are giving up good jobs, a nice home and a comfortable living to move over there. But, I would rather give it a go and it not work out than always wonder, 'what if?'. You have to take a risk in life and hopefully this will pay off!

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