Many clients of Global QROPS Ltd have UK Final Salary Pensions schemes and ask our advisers, will a Final Salary (Defined Benefits) scheme transfer to Australia? Providing the receiving scheme in Australia is registered and approved as a Qualifying Recognised Overseas Pension Scheme (QROPS), a transfer can take place, however, the more appropriate question should be ‘would I benefit from a UK final salary pension transfer to Australia?’.
Australian Superannuation schemes work on a very different basis to UK Final Salary schemes. Australian Superannuation schemes are set up on Money Purchase (Defined Contribution) basis and thus there is no like for like equivalent of a UK final salary scheme.
Whether you are considering a UK final salary pension transfer to Australia, or to any other UK pension or QROPS scheme, an individual has to be aware of the benefits they are giving up from their original scheme. With a UK final salary scheme, the responsibility and the cost to provide a pension member with retirement benefits lies with the employer (or former employer). By transferring out of such a scheme into a money purchase environment, an individual is placing the responsibility on themselves and the new scheme to provide adequate benefits for their retirement.
It is vitally important, therefore, that an individual establishes that they have received a fair transfer value from the trustees of their final salary scheme before they even consider a transfer out. Global QROPS Ltd can provide impartial advice and transfer analysis calculations for anyone considering a UK final salary pension transfer to Australia.