Residents of India who have previously lived and worked in the UK as doctors or nurses, or in other capacities within the National Health Service (NHS) can now transfer their NHS pension into a QROPS scheme in India, or to an overseas QROPS scheme.
Each year thousands of healthcare professionals return to India with an NHS pension, which is effectively frozen until the scheme member is either 60 or 65. Today, with the help of QROPS Adviser Group, they are able to transfer with their pension into a scheme which can offer them early access to their pension, increased levels of income and investment returns, and enhanced tax planning benefits.
What are QROPS?
QROPS pensions were introduced in 2006 by the UK government in order to allow members of UK pension schemes to transfer them to overseas schemes if they had left the UK. These changes were made in order comply with an EU Directive in relation to freedom of movement of pensions, and has subsequently huge opportunities for Indians who have returned home to India after a spell working in the UK.
In essence, a QROPS pension is simply a pension scheme which is based outside of the UK, and which broadly offers scheme members similar benefits to those which could be offered to UK member schemes. However, the nuances which each overseas QROPS jurisdiction offers can translate into significant financial and tax planning opportunities for Indian residents with a UK NHS Pension Scheme.
The benefits of a QROPS Scheme for NHS Pension Members in India
There are numerous benefits on offer for someone who wishes to transfer an NHS pension into a QROPS plan in India. We cann list some of these advantages as follows below:
Early Access to your NHS pension
Whilst the NHS pension scheme offers it's members a very generous benefits scheme, one of the drawbacks is that you must wait until you are 60 before you can access these benefits, if you are a member of the 1995 Section (for new members, of the 2008 Section, the wait is even longer, until the age of 65).
Therefore for Indian residents who wish to retire early, or at least access some of their pension in the form of a lump sum, a pension transfer to an overseas QROPS scheme is a very attractive option. With a QROPS Scheme, you can access your pension as early as 50, depending on the rules of the individual QROPS jurisdiction and scheme rules.
Enhanced tax free lump sum payment
With the NHS pension scheme, the rules on tax free lump sums are determined by UK pension rules, which state that a maximum of 25% of the pension transfer value can be taken as a tax free lump sum. However with most QROPS schemes, up to 30% of the transfer value can be taken as a tax free lump sum for Indian residents (in fact, local India QROPS scheme members can take up to 33% tax free).
Control over your pension fund
The nature of the NHS pension scheme is that it is a defined benefit scheme - which means that a member is entitled to receive a fixed salary each year after they retire. However this also means that they hve no control over how he funds are invested. Many investors, especially in India want more flexibility and choice in relation to how their pension is invested - perhaps in investment fund in India, or in commoditie such as gold or silver, in natural resources, or even in property.
With a QROPS scheme which is based in Malta or Gibraltar, a resident in India can set up an investment account, and have the freedom and flexibility to invest in a choice of over 6,000 different investment funds.
Compared to the NHS pension scheme, this is one of the biggest advantages for a resident of India establishing a QROPS transfer in an overseas jurisdiction. When a member of the NHS pension scheme dies, their husband or ife will only receive half of their pension payment. This can cause severe financial hardship, as suddenly the household income has halved. Then, to compound matters further, after the spouse passes away, the pension stops paying completely, and there is nothing to pass on to the children.
This scenario can be contrasted with the situation of that same Indian resident's NHS pension being transferred to an overseas QROPS transfer, where after the scheme member has dies, the entire remaining pension pot is available to the member's beneficiaries. So even if the member's wife or husband dies soon after - the pot is available to be passed on to children and/or grand chidren - or to whoever the member wishes.
With a QROPS scheme which is based in Malta or Gibraltar, a resident in India can set up an investment account, and have the freedom and flexibility to invest in a choice of over 6,000 different investment funds.
Pass on your pension fund to your loved ones after you pass away
Compared to the NHS pension scheme, this is one of the biggest advantages for a resident of India establishing a QROPS transfer in an overseas jurisdiction. When a member of the NHS pension scheme dies, their husband or ife will only receive half of their pension payment. This can cause severe financial hardship, as suddenly the household income has halved. Then, to compound matters further, after the spouse passes away, the pension stops paying completely, and there is nothing to pass on to the children.
This scenario can be contrasted with the situation of that same Indian resident's NHS pension being transferred to an overseas QROPS transfer, where after the scheme member has dies, the entire remaining pension pot is available to the member's beneficiaries. So even if the member's wife or husband dies soon after - the pot is available to be passed on to children and/or grand chidren - or to whoever the member wishes.
NHS Pension Transfer Process
The process of a resident in India to transfer their NHS Pension into a QROPS plan is as follows:
Step 1. Initially QROPS Adviser Group will obtain the latest transfer value of your NHS pension from the scheme administrators in the UK.
Step 2. Once we have received this valuation, we will consider your financial goals and objectives, and investment risk profile and recommend the most suitable QROPS scheme for you.
Step 3. We will assist you to complete all of the relevant paperwork, and dispatch this to the QROPS trustee for them to process.
Step 4. The QROPS trustee will liaise with the NHS scheme administrator to ensure a timely release of the pension funds, and then place the funds in the investmen scheme recommended and agreed with the client.
Step 5. Your QROPS scheme is now in place, and you can enjoy the rewards and benefits of your QROPS scheme - such as increased tax free lump sums, enhanced income, and the myriad tax planning and inheritance and estate planning advantages.
QROPS Adviser is a leading QROPS advisory firm and has been advising on NHS pension transfers to Indian residents since the inception of the QROPS legislation in 2006. Through our dedicated Indian advisory division and dedicated website, http://qropsadviser.in we inform and advise residents of India on their QROPS options and help them make the right choices for the NHS pension.
Please note that QROPS Adviser do not charge you for our services - we receive a fee directly from the QROPS provider or investment company. Also, we will never have any access to your funds - your NHS pension fund will be transferred directly from the NHS scheme across to the QROPS scheme, so you can rest assured that your funds are 100% safe.
For more information on how we can help you make the most of your NHS pension, please contact us as follows:
QROPS Adviser Group
Tel: +91 80 4911 6687 (Bangalore office)
Tel: +34 647 316 898 (European headquarters)
Email: info@qropsadviser.net
Website: http://qropsadviser.in
Step 4. The QROPS trustee will liaise with the NHS scheme administrator to ensure a timely release of the pension funds, and then place the funds in the investmen scheme recommended and agreed with the client.
Step 5. Your QROPS scheme is now in place, and you can enjoy the rewards and benefits of your QROPS scheme - such as increased tax free lump sums, enhanced income, and the myriad tax planning and inheritance and estate planning advantages.
About QROPS Adviser Group
QROPS Adviser is a leading QROPS advisory firm and has been advising on NHS pension transfers to Indian residents since the inception of the QROPS legislation in 2006. Through our dedicated Indian advisory division and dedicated website, http://qropsadviser.in we inform and advise residents of India on their QROPS options and help them make the right choices for the NHS pension.
Please note that QROPS Adviser do not charge you for our services - we receive a fee directly from the QROPS provider or investment company. Also, we will never have any access to your funds - your NHS pension fund will be transferred directly from the NHS scheme across to the QROPS scheme, so you can rest assured that your funds are 100% safe.
For more information on how we can help you make the most of your NHS pension, please contact us as follows:
QROPS Adviser Group
Tel: +91 80 4911 6687 (Bangalore office)
Tel: +34 647 316 898 (European headquarters)
Email: info@qropsadviser.net
Website: http://qropsadviser.in
