UK Teacher’s Pension highlights QROPS public sector loophole

13th August 2015

The Author: Craig Gardner
Craig works in the Madrid office as a Financial Planner and is responsible for helping clients make better financial decisions.

Offshore-Beach-sceneThe UK Teachers’ Pension scheme has advised its members there is a loophole in the current rules surrounding the transfer of public sector pensions that would allow access to certain qualifying recognised overseas pension schemes (QROPS).

Transfers from unfunded public sector pensions – including pensions for teachers, the civil service, the armed forces, and the police and fire services – were banned from being transferred into QROPS and other defined contribution schemes when the pension reforms came into force in April this year.

However, the Teacher’s Pension has advised its members that the current rules do not extend to those QROPS schemes which are not occupational pension schemes and which have their main administration in a state in the European Economic Area (EEA).

In a statement on its website the scheme advised its members that if they wanted to take advantage of the loophole they needed to act quickly…. Read More

From an article published in International Adviser on 12-08-2015 by Richard Hubbard

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