UK Government to plug QROPS public sector loophole
The UK Government is currently looking to close a loophole that allows expats to transfer their unfunded public sector pensions into 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 freedoms came into force in April.
However, the government has admitted there is a loophole in the system where overseas transfers are allowed if pension schemes are administered in the European Economic Area (EEA). A spokesperson from the Treasury said: “We are clear that the transfer restrictions from unfunded public service pension schemes should apply to transfers to qualifying recognised overseas pension schemes, including those based in the European Economic Area. “We are currently consulting with pension schemes ahead of introducing legislation to enforce this.”
If the UK government is worried about people moving their Pensions out of the control of the UK, and there is a last chance to do this, maybe if YOU have not done so you should look at it now?
I am here to help, and even if not for you (for every ex-teacher, ex-policeman, ex-armed forces, ex-civil servant, etc) that YOU know, please get them to talk to me now.