There have recently been (additional) changes within the UK regarding the transfer of UK Pensions to foreign Superannuation funds. With all UK Pension transfer currently being put on hold until further notice.
These changes have effected all UK Pension transfers to Australia across the board as the HMRC (Her Majesty’s Revenue Council - the body that governs the UK Rollovers) has changed the requirements that a Superannuation Fund needs to meet in order to be a compliant fund – or previously known as a QROPS fund (Qualifying Recognised Overseas Pension Scheme).
In order to receive pension funds from the UK, an Australian fund needs to now be a ROPS scheme (Recognised Overseas Pension Scheme), however the requirements to meet a ROPS status have been slightly altered, with a new requirement that any funds within Superannuation are not permitted to be accessed prior to having met preservation age (retirement) – this means no early access is allowed.
This causes a problem for Australian Super funds because under the SIS Act Regulations (Superannuation Industry Supervision Act – the rules which govern our Superannuation) a member is able to obtain early access to their Superannuation funds if they are experiences financial hardship and compassionate grounds. This conflicts with the new ROPS requirements in order to be eligible to receive any UK Pension funds.
This has caused all Australian Super funds across the board suspend the rollover of any UK Pension funds.
As a result the ASFA (Association of Superannuation Funds of Australia) and the FSC (Financial Services Council) are in discussion with the Australian treasury who are in discussion with the HMRC for further clarification on the new regulations while applying for an exemption.
We hope to have a clear indication of how we can proceed with UK Pensions in the near future.
-Riechanne Ratering
Thane Financial Planner
In order to receive pension funds from the UK, an Australian fund needs to now be a ROPS scheme (Recognised Overseas Pension Scheme), however the requirements to meet a ROPS status have been slightly altered, with a new requirement that any funds within Superannuation are not permitted to be accessed prior to having met preservation age (retirement) – this means no early access is allowed.
This causes a problem for Australian Super funds because under the SIS Act Regulations (Superannuation Industry Supervision Act – the rules which govern our Superannuation) a member is able to obtain early access to their Superannuation funds if they are experiences financial hardship and compassionate grounds. This conflicts with the new ROPS requirements in order to be eligible to receive any UK Pension funds.
This has caused all Australian Super funds across the board suspend the rollover of any UK Pension funds.
As a result the ASFA (Association of Superannuation Funds of Australia) and the FSC (Financial Services Council) are in discussion with the Australian treasury who are in discussion with the HMRC for further clarification on the new regulations while applying for an exemption.
We hope to have a clear indication of how we can proceed with UK Pensions in the near future.
-Riechanne Ratering
Thane Financial Planner
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This email and its attachments are not intended in any way to formulate any part of advice formal, personal or otherwise.
This email is designed for the information only purposes of its recipient and therefore is not intended for re-circulation.
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