The UK Government outlined its intention to ban pension transfers from unfunded Public Sector Pension Schemes in the UK Budget earlier this year. The effect of this announcement means that from 6th April 2015, Public Sector Schemes members, who are looking at completing a UK pension transfer to QROPS, will not be able to do so.
For existing members of the NHS, Teacher’s, Civil Service, Police, Armed Forces and Firefighter’s pension schemes, who are living overseas, time is running out to make a decision as to whether to keep their pension in the UK or transfer the scheme abroad with them.
In the original Budget document, in March 2014, it was stated that the transfer ban applied to all unfunded Public Scheme member’s – except in very limited circumstances. There is yet to be clarification on what those limited circumstances might be.
Global QROPS were hoping to have more information regarding any exceptions to the ban, in the Autumn statement, announced by the Chancellor of the Exchequer, George Osborne, on 3rd December 2014. However, no further clarification has been forthcoming as yet.
Deadline to Transfer
In order to transfer out of a Public Sector Pension Scheme, the scheme actuary must first calculate a Cash Equivalent Transfer Value (CETV). The Public Sector Scheme has a statutory right to take 3 months to produce the CETV and relevant paperwork.
This timescale is a very important consideration as a Public Sector Scheme member will not be able transfer if they do not agree to the CETV and return the paperwork before the ban comes into effect.
For more information on the possible implications for you, please contact Global QROPS immediately and one of our advisers will be happy to speak with you.