From April 5 2015, it will not be possible for a member of the NHS pension scheme to transfer their pension into a QROPS scheme in India, even if they have permanently left the UK and returned to India or elsewhere.
The UK government has introduced this change as part of a huge revamp of the UK pension regime announced in the Budget in March. One of the key drivers behind the pension reforms was to give pension holders more freedom and flexibility over their pension fund.
One of the key reforms is that members of defined contribution schemes will be able to withdraw their entire fund from the age of 55, subject to being taxed at their marginal rate of income tax.
The risk, therefore to the government is that millions of members of public sector schemes, such as teachers, NHS, local government, would transfer their final salary schemes into defined contribution schemes, and then withdraw their entire pension fund. This would place a huge strain on public sector pension funds.
As a result of this perceived risk, the government has announced that as part of the reforms, transfers from unfunded public sector schemes would be banned.
In short, the NHS pension scheme administrator will not be able to process any transfers out of the scheme after 5 April – so after this time if you are living in India and still have your NHS pension, you won’t be able to transfer it.
The government has yet to publish draft legislation, so we cannot comment on the precise logistics of how the ban will be introduced. But the government has made its position clear – it has taken consultations from interested parties (including those from various QROPS providers), and has reiterated it’ intention to ban transfers from the NHS scheme.
However, there is still time to start the transfer process.
Whilst the ban on NHS transfers will not take effect until 5 April 2015, it is important to act now to avoid any delays. The NHS scheme is already experiencing severe delays in processing CETV’s (‘cash equivalent transfer values’) for scheme members, and are also experiencing delays in processing the actual transfer out of the scheme into the QROPS.
QROPS Adviser Group can assist you with the entire process of transferring your NHS pension into a QROPS, to ensure that all the requisite paperwork is completed and processed with the NHS in order to meet the 5 April deadline.
Please email us at info@qropsadviser.in or call us on +44 7582 589561 for more information, or to schedule a free, no obligation consultation in relation to your UK pension.
Alternatively, visit our dedicated Returning NRI website at www.qropsadviser.in, and complete the contact form, and we will get back to you within 24 hours.
The UK government has introduced this change as part of a huge revamp of the UK pension regime announced in the Budget in March. One of the key drivers behind the pension reforms was to give pension holders more freedom and flexibility over their pension fund.
One of the key reforms is that members of defined contribution schemes will be able to withdraw their entire fund from the age of 55, subject to being taxed at their marginal rate of income tax.
The risk, therefore to the government is that millions of members of public sector schemes, such as teachers, NHS, local government, would transfer their final salary schemes into defined contribution schemes, and then withdraw their entire pension fund. This would place a huge strain on public sector pension funds.
As a result of this perceived risk, the government has announced that as part of the reforms, transfers from unfunded public sector schemes would be banned.
What do the changes mean for Indian residents with an NHS Pension?
In short, the NHS pension scheme administrator will not be able to process any transfers out of the scheme after 5 April – so after this time if you are living in India and still have your NHS pension, you won’t be able to transfer it.
The government has yet to publish draft legislation, so we cannot comment on the precise logistics of how the ban will be introduced. But the government has made its position clear – it has taken consultations from interested parties (including those from various QROPS providers), and has reiterated it’ intention to ban transfers from the NHS scheme.
However, there is still time to start the transfer process.
How do I start the NHS transfer process?
Whilst the ban on NHS transfers will not take effect until 5 April 2015, it is important to act now to avoid any delays. The NHS scheme is already experiencing severe delays in processing CETV’s (‘cash equivalent transfer values’) for scheme members, and are also experiencing delays in processing the actual transfer out of the scheme into the QROPS.
QROPS Adviser Group can assist you with the entire process of transferring your NHS pension into a QROPS, to ensure that all the requisite paperwork is completed and processed with the NHS in order to meet the 5 April deadline.
Please email us at info@qropsadviser.in or call us on +44 7582 589561 for more information, or to schedule a free, no obligation consultation in relation to your UK pension.
Alternatively, visit our dedicated Returning NRI website at www.qropsadviser.in, and complete the contact form, and we will get back to you within 24 hours.
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