UK pension transfers (QROPS)

You can transfer your UK pension if:
• You are not already receiving income from an annuity purchased with your UK pension funds; and
• Your pension is not a State Pension, unfunded public sector pension or civil service pension; and
• The scheme you are transferring to is a QROPS, such as the NZRT

When applying to transfer you must be in New Zealand.

From 9 March 2017, some transfers to and from a QROPS may incur a 25% UK tax charge called the Overseas Transfer Charge.

This charge will apply if:
• you are not a New Zealand tax resident when you request to transfer your UK pension funds from a UK pension scheme, or from another QROPS if the transfer is made within five full UK tax years of the date you originally transferred your UK pension funds from the UK ('five year period'),
• AND the original transfer was requested on or after 9 March 2017.

The Overseas Transfer Charge may also become payable if you cease to be a New Zealand tax resident within the five year period, provided you requested the original transfer on or after 9 March 2017 and the transfer has not previously been subject to the charge.

We recommend that you obtain advice from a tax specialist.

Usually when you turn 55, which is the normal minimum pension age in the UK, you can begin withdrawing funds from your QROPS account if so desired.
You can receive the funds in your bank account as:
• a one-off payment
• a regular income
• a combination of both.

There may also be circumstances in which you can withdraw your funds before you reach the normal minimum pension age in the UK in the following circumstances:
• If you retire before age 55 due to ill-health, you will be able to withdraw the balance of your QROPS account. To do so you will need to provide evidence from a registered medical practitioner that you are, and will continue to be, incapable of carrying on your occupation because of physical or medical impairment.
• If you retire before age 55 due to serious ill-health and provide evidence from a registered medical practitioner that you are expected to live for less than one year, you will be able to withdraw all of your QROPS account.
• In the case of your death the balance of your QROPS account will be paid to your legal personal representative.
• If we receive a property sharing court order.
• If you transfer your funds to another QROPS.

3-6 months if from the UK
1-2 months if from NZ

This will depend on your current scheme, where it is based and whether all the required information is provided. We expect transfers from the UK to take three to six months and transfers from within NZ to take up to two months. The funds will be allocated to your QROPS account when they are received by the NZRT as cleared funds from your pension provider.

When your UK pension funds are received by the NZRT, you and your Adviser will receive a confirmation letter with the date that the funds were received and the New Zealand dollar amount.