Listed below are answers to many of the frequently asked questions we receive about QROPS.

Is there a minimum?

While there is no minimum amount under QROPS, the transfer amount must be large enough to be cost effective and so we provide advice to our clients on the transfer of smaller funds into QROPS. Normally £150k - £200k is needed to make a QROPS transfer cost effective due to the minimum charge imposed by the QROPS providers. This is why you will see many sites advertising “£150K plus In UK Pension?”, as these can only offer you one QROPS solution at one standard charging structure and they are not truly independent.

Am I able to transfer protected rights funds into a QROPS?
YES - so long as the receiving QROPS is willing to accept it.

If transferring protected rights it is necessary to state that you understand that all protection associated with UK pensions legislation is being given up.

When is it not a good idea to transfer to a QROPS?
Although in most situations we have come across associated with non-UK residents the arguments are overwhelmingly in favour of transferring UK pension rights to a QROPS.

However, some of the older pension plans have benefits such as guaranteed annuity rates that were set when interest rates were much higher than today. In those circumstances it may be better to stay put, however it is important to seek appropriate advice.

This normally takes between 4-8 weeks.

The first step is to complete a letter of authority. This enables the most up to date information about your scheme to be obtained including benefits and transfer value.

This will also allow us to collect the appropriate discharge forms from your pension provider. Once we have this information we will provide you with a detailed analysis of your current benefits and the advantages and disadvantages of transferring to a QROPS.

Which jurisdiction is best?
There are hundreds of QROPS and numerous jurisdictions.

It is important to look for strong investor protection principles which are similar to those associated with the UK.

My pension fund is of substantial value. Are there any tax issues?
Consider registering for “enhanced protection”.

A transfer to a QROPS will be a Benefit Crystallisation Event and so will give rise to a tax charge if the amount transferred exceeds the individual’s unused lifetime allowance. This allowance, to which everyone is entitled, is GBP 1.6 million in the 2007/08 tax year. Thus before any transfer to a QROPS is finalised it is essential to check whether there is any possibility of this allowance being exceeded.

If yes, then registration for an “enhanced protection” should be put in place before transferring to a QROPS. This is a straight forward process and removes any possibility of an attack on the transfer.

What are the costs associated with a QROPS?
This depends on individual circumstances, the nature of the benefits and the QROPS chosen.

These are just a sample of some of the QROPS related questions that we receive on a daily basis. If you are considering transferring your UK pension to a QROPS we would suggest you meet with one of our specialist advisers for a face to face financial review. We can meet at a time and place that is convenient to yourself or you may wish to visit our head office which is based in Prague. Our advice is totally free and should you decide at the end of the interview that you do not wish to proceed there is no obligation to complete any business with us.

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