What to Look for in QROPS Providers
QROPS Providers – If you are a British pensioner living or working abroad you can transfer your UK pension to a Qualified Recognised Overseas Pension Scheme or QROPS in your country of residence. This program was introduced in April 2006 along with several other sweeping changes to UK work pensions. There are some conditions for establishing a QROPS including the requirement that the HMRC QROPS providers picked by the pensioners are authorized to implement this scheme in foreign countries by Her Majesty’s Revenue and Customs (HMRC) office.
UK pensioners working abroad or planning to live out their retirement years outside of Great Britain should first look into qualified QROPS providers and pick the one that they will partner with in this undertaking. There are quite a number of them operating out of several QROPS jurisdictions that accept transfers of pension funds. Pensioners who are interested in finding must consult the list provided by the HMRC. The list contains the QROPS providers that have been authorized by the agency from countries like Switzerland or the United States.
The list offered by the HMRC is updated two times each month to ensure that the pensioners are in no danger of picking a provider that is not accredited by the agency. Pensioners should ensure that the provider they pick is 100 percent approved to establish a QROPS or they may face penalties. The HMRC makes it very clear that being on their list is in no way an endorsement for the pension provider.
There are some conditions that the HMRC has set for providers before they can be included in the list. The agency will then scrutinize every detail of the provider’s application. Even those who are already on the list are under close scrutiny and if found to be non-compliant with the conditions, the HMRC will remove the provider’s QROPS status thereby removing them from the list altogether. This situation could leave the provider and the member both liable.
This is the reason why it is important to pick a QROPS adviser of good standing to facilitate the transfer of your QROPS from the UK to the foreign country you will live in. Make sure you have face-to-face interactions with your adviser to discuss the scheme you prefer and the jurisdiction where the QROPS will be established. A good adviser can walk you through various schemes and work with you until you decide on the scheme that suits you best.
Another thing that pensioners should look for in a QROPS provider is their license issued by the UK Financial Services Authority. This means that the broker operates within the rules set by the agency and has qualified to be a QROPS provider. These brokers will be well versed on which schemes will not be acceptable to the HMRC.
Pensioners can now enjoy their pension benefits under QROPS as long as they are able to choose the correct QROPS providers to make sure that everything is legal and above board.