Is the clock ticking for NZ resident members of the Public Sector Transfer Club?
Those potentially affected by the new legislation are former UK state employees who have retained benefits in their superannuation or pension schemes (collectively known as "the Club") and include:
- University lecturers
- Armed forces personnel
- Police officers
- Prison officers
- Fire fighters
- Civil servants and local government employees
"Before the NZ IRD's deadline for overseas pension transfers had even been reached, these changes were proposed in the UK’s Budget announcement,"
Traditionally, Britons have been cautious about moving their UK pensions. However, due to the current UK financial climate of low interest rates and even worse annuity rates, transfer values quoted by schemes in the Club may never be as high again in relative terms. Therefore, combined with the new NZ tax rules and the April 2015 deadline looming, it would seem that greater consideration than ever before is required in assessing the viability of transferring a UK pension scheme.
GBPensions are keen for clients to have realistic expectations about the timescales involved in a pension transfer. Six months is a reasonable prediction, especially since it is not unusual to wait 12 weeks (or longer) to receive documentation back from the former UK employer.
Tony Chamberlain comments, "Members of the Club already account for about 15% of our clients. For obvious reasons, we're expecting this number to increase dramatically over the next two to three months."
For a copy of the full list of UK schemes in "the Club", or to find out if you are affected, please email firstname.lastname@example.org.
Tony Chamberlain is an authorised financial adviser whose Disclosure Statement is available without charge or obligation by contacting the email address above.
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24th June 2014
GBPensions have been advising on the transfer of UK pensions to New Zealand for more than 25 years. The company is British owned and operated, and based on Auckland's north shore. GBPensions advisers have relevant qualifications to operate under the regulatory regimes of both the UK and NZ, and offer the only truly independent advice on the transfer of UK pensions into NZ.
Tony Chamberlain, GBPensions
+64 9 414 2089