Do you have money in a UK pension scheme that you would like to bring to New Zealand?
If you want to move your UK pension plan funds to New Zealand, we can handle it for you.
You can choose to transfer your UK pension plan funds to either our Gareth Morgan KiwiSaver Scheme or GMI Superannuation Scheme. Unlike some in the business, we don't charge you anything to arrange the transfer of your UK funds. We see this service as part of administering and managing your savings, which is already covered in the scheme fees. We think any extra fee would be double charging, and that’s something we don’t do.
Join up with Gareth Morgan Investments. You can start the process right away by filling out an authority to transfer form. Or read on if you want more details about the process and rules:
What are the advantages and disadvantages?
Advantages:
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If you transfer your UK pension plan funds to a KiwiSaver scheme, they will be available to you as a lump sum when you become eligible to withdraw them.
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If you die before withdrawing your funds, your entire account balance will be paid to your estate.
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Easy access to information about how your money is performing and where your money is invested, without the hassle of dealing with an overseas company.
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Regular contributions can be made to your member account.
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Consolidation of your UK and NZ retirement savings.
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You can manage your risk tolerance - for example, if you are nearing retirement and need a more conservative approach to investing, you can easily change to a conservative investment direction.
Disadvantages:
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You can only transfer your UK pension plan funds to a NZ scheme that has QROPS (Qualifying Recognised Overseas Pension Scheme) status. You will then be subject to any lock-in provisions set by the scheme, even if under UK pension rules you may have been able to access the funds earlier. The Gareth Morgan KiwiSaver Scheme and the GMI Superannuation Scheme have QROPS status.
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You lose any guarantees that are built into your UK pension such as minimum pensions, spouse or dependants pensions, or inflation-linked increases.
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Once you have transferred your UK funds to NZ you cannot transfer your funds back to the UK.
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HM Customs and Revenue may impose additional taxes on your UK pension funds (of up to 55% of the transfer value) if you:
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return to live in the UK after transferring your pension to NZ;
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transfer your funds to a scheme that doesn't have QROPS status; or
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withdraw your UK pension funds from your scheme early.1
Transferring your UK pension plan funds is an important decision. There may be tax implications. It is recommended that you discuss proposed transfers with your UK and New Zealand tax advisers as well as your UK pension provider.
What is the process for transferring a UK pension?
Just follow these steps. The process generally takes around three months to complete.
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Complete an authority to transfer form, giving us details about the UK pension scheme you wish to transfer. If you are not already a member, you will also need to join the Gareth Morgan KiwiSaver Scheme or the GMI Superannuation Scheme.
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We will contact your UK pension scheme provider for you and request the appropriate transfer forms and a current transfer value quote, and send these to you to complete.
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You may want to seek specialist advice about whether to proceed with the transfer based on the transfer value quote provided.
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Once you have returned the completed transfer forms to us, we will complete our part and send these back to your UK pension provider along with proof of our QROPS status.
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Your UK pension provider will pay the transfer payment as a lump sum in Great British Pounds (GBP) directly to our scheme, which will be converted to NZ dollars when it is received. As a Portfolio Investment Entity (PIE), our schemes are unable to hold your UK pension funds as GBP.
What is the cost to transfer?
We won't charge you anything to transfer.
Your UK pension plan funds will be deposited to your Gareth Morgan KiwiSaver Scheme or GMI Superannuation Scheme account and invested. We charge one fee for administering and managing members' savings in that Scheme; we don't charge any commissions or extra fees on top of that.2
Although we won't charge you a fee to transfer, we can't guarantee that your UK pension provider won't.
What happens to the money?
Your UK pension plan funds will be deposited in the scheme you select, and you can choose how you want it to be invested. You can choose a Cash, CashPlus, Conservative, Balanced or Growth investment portfolio, or a combination of these, in the Gareth Morgan KiwiSaver Scheme. You can choose a Conservative, Balanced or Growth investment portfolio, or a combination of these, in the GMI Superannuation Scheme.
Your UK pension funds will be locked in until you become eligible to withdraw from the scheme. Under current NZ legislation, there is no further NZ tax payable on withdrawal.
How can I withdraw the money?
If you have transferred your funds to the Gareth Morgan KiwiSaver Scheme you will be able to make lump sum or regular withdrawals, or withdraw the full amount at the time you are eligible to withdraw from the scheme.
If you have transferred your funds to the GMI Superannuation Scheme:
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Prior to 6 April 2012 - you will be able to make lump sum or regular withdrawals, or withdraw the full amount at the time you are eligible to withdraw from the scheme.
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On or after 6 April 2012 - you will be able to make a lump sum withdrawal of up to 30% of the transferred funds at the time you are eligible to withdraw from the scheme, and the remaining 70% must be used to provide an income for life. Please contact us for further details on the income for life payment.
The implications of transferring UK pension plan funds to the schemes are based on our understanding of UK pension rules at 28 November 2012. Future changes to those rules could subsequently adversely affect the treatment of UK pension plan funds transferred to the schemes and payments from the schemes.
1Subject to Trustee approval
2Full details of fees, expenses, costs and charges payable to members of each scheme are available in the investment statement for that scheme.
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