UK PENSION TRANSFER STARTER KIT

UK PENSION TRANSFER STARTER KIT

This UK Pension Transfer Starter Kit is designed for anyone with a UK pension fund, whether they are n residents or individuals who plan to live and/ or retire in. It is natural that an individual would want to move their retirement funds to the same country that they intend to retire in. With offices in both and the UK, bdh Sterling are the leading specialists in UK pension transfers to. Which UK Pension Funds can be transferred? Defined Contribution (DC) Pension Schemes, including company and personal pension and drawdown arrangements Private Sector Defined Benefit (DB) Schemes Funded Public Sector DB Schemes What UK Pension Funds can t be transferred? The UK State Pension Annuities purchased with a life insurance company Company Pension already in payment Unfunded Public Sector Defined Benefit Schemes What is (Q)ROPS? A Qualifying Recognised Overseas Pension Scheme (QROPS) first came into effect with the introduction of Pensions Simplification in the UK on April 6th 2006 (also known as A-day ). The purpose of the legislation was to streamline the process of transferring a UK pension overseas. It removed the responsibility of making specific declarations and providing certain documents from the migrating individual, and placed it on the receiving overseas scheme. However there have been significant changes to the legislation governing (Q)ROPS that came into effect on April 6th, 2015. Under the new legislation, to qualify to be a QROPS, a scheme cannot be a registered pension scheme (i.e. a UK based scheme) and must meet four incremental definitions at all times. These are: 1. The scheme must be a pension scheme i.e. provide benefits in respect to retirement, ill health, death or similar. 2. The scheme must be an overseas pension scheme - i.e. is outside the UK, and meets both the Regulation Requirement the Tax Recognition tests. 3. The overseas pension scheme must be a Recognised Overseas Pension Scheme (ROPS) i.e. it meets both the Benefit Tax Relief and Pension Age tests. 4. The ROPS must become a QROPS as defined by the legislation i.e. the scheme manager notifies HMRC that the scheme meets the requirements of a ROPS, informs HMRC if is ceases to be a ROPS, and undertakes to comply with the prescribed ongoing reporting requirements. Without a QROPS registration, an overseas pension scheme would not be permitted to accept a transfer from a UK pension scheme. The responsibilities of the QROPS do not end with registration; the overseas scheme has reporting responsibilities to HMRC for 10 years from the time of the transfer. This reporting is in place to ensure that payments made to an overseas pension member, whose funds had transferred over from a UK scheme, receive benefits broadly in line with the UK scheme. The 10 year reporting requirement however is different to the Member Payment Provision Period. Member Payment Provision Period (MPPP) The MPPP is the period when any payment, made to a QROPS member, could be subject to an unauthorised payment charge by the UK s Her Majesty s Revenue and Customs (HMRC). The period is 5 complete, consecutive UK tax years of the pension member s overseas residency. After the member has been resident overseas from the UK for this period, an unauthorised payment would not apply.

Recent Changes to UK Pension Transfers There have been significant changes in 2015 that affect all UK pension transfers to. To better understand these government imposed changes, we have outlined them in a timeline below. 2015 Timeline for Changes to UK Pension Transfers April 6th A transfer ban comes into effect for all unfunded public sector pensions (e.g. NHS, Police etc.) Any UK Defined Benefit (DB) Scheme, now requires licensed UK financial advice before a transfer can proceed. September 1st First n additions to the (Q) ROPS list by HMRC includes a SMSF with QROPS designation 2015 The Current State of Play July 1st HMRC removed all bar 1 n superannuation fund (approx.1600 in total) from the (Q)ROPS list HMRC suspended all UK pension transfers to, including those in progress. The addition of a Self Managed Super Fund (SMSF) with QROPS designation to the HMRCs (Q)ROPS list in September confirmed that some clients can now transfer their UK pension funds to. However UK legislation enacted from April 6th 2015 still enforced restrictions on which members would be eligible to transfer to, and the type of schemes they could in fact transfer. These are outlined later in this document. What is a QROPS SMSF? A QROPS SMSF is a SMSF that has met the designation of QROPS as prescribed by HMRC. As mentioned, a UK Pension transfer cannot occur to any overseas scheme that is not a QROPS. To qualify as a QROPS in the post 6th April 2015 legislative environment, a SMSF requires a specially drafted trust deed. bdhsterling, though its global professional partnerships, was instrumental in getting the first QROPS SMSFs approved by HMRC and managed the onward transfer of funds to. In 2003 I left for ten years, to work overseas in both the United States and in Scotland. During that time Michael Williams looked after my finances in. In September 2013 I returned to and started to prepare for my retirement. Then I was referred to Simon Barwick and since then Simon has provided me with excellent financial advice and service on how to set up superannuation accounts and how to manage my funds in the next few years before I actually retire. Part of this was to help me transfer funds from both the US and the UK into my n super account. Again, the advice and service was excellent. I would recommend them and bdhsterling for anyone, but especially for people who have assets overseas that might need transferring back to in a tax effective way. - Dr Tony Townsend We are grateful for the help that Nick gave to help me and my wife with our migration to. Your Migration and Financial Report was easy to understand and Nick was always helpful with our tax forms and pension planning. We would recommend Nick and your company to our friends and family. - Terry and Lynne Warren

What are you options now? At bdhsterling, depending on your individual situation, we provide 2 pension transfer services being: 1. Direct UK Pension Transfer, and 2. Indirect UK Pension Transfer. These are outlined in the diagram below. We are able to facilitate UK pension transfers in either GBP or AUD from either the UK, offshore jurisdictions or in, and convert to your chosen currency at wholesale rates. Even if you are now under 55, there are compelling reasons now to consider your options. www.bdhsterling.com

Why Transfer to? Superior Tax Effectiveness in Retirement In, from age 60, all retirement income and lump sums drawn from Super will be entirely free of tax. Pensions drawn from UK schemes are taxed at your marginal tax rate (MTR), which can be up to 49%. Greater Control over Retirement Benefits - You will have greater control and management of your retirement benefits by consolidating and ultimately transferring them to ; the country in which you intend to retire. Wider range of investment options, including residential property (not in QROPS funds). Transparency of fees Superannuation funds in general are a very transparent vehicle with respect to fees. Flexibility of Income Choose between 4% and 10% in pension income each year, depending on your needs. However, despite these and many other reasons, there are also disadvantages to transferring your pension fund, and it is important that you take independent advice specific to your circumstances before making any decisions. Our Transfer Process Step 1 Simply complete the two forms at the back of this Starter Kit. Step 2 Receive a Transfer Valuation and Summary of Options - Free and with No Obligations. Step 3 Receive your report On request our licensed UK advisers will prepare a Pension Transfer Analysis Report (PTAR) which outlines our recommendations. Step 4 Engage bdhsterling If a transfer is recommended, and you accept our recommendations, let bdhsterling manage all aspects of the transfer for you. Manage Locally Many clients prefer to manage their assets locally. Elimination of Long Term Currency Risk Transferring your pension will eliminate the currency risk that would be involved if you continued to take your benefits at retirement from the UK. If your pension is paid from the UK the amount you receive will vary according to the value of the 1 to AUD$1. Transferring allows peace of mind in the fact that you won t have to worry about the source or regularity of your retirement income. Avoidance of additional telegraphic transfer fees - If regular income in retirement is drawn directly from a UK scheme, you will incur ongoing costs in respect of each transfer. I would like to thank you and your company for doing such an excellent job. When I started this in January I had no idea how it would turn out. I contacted a couple of companies and was impressed by the detail in your response. The link on your site to the FCA together with your articles on the Internet assisted with my due diligence. The quality of all your work was extremely professional and I was very impressed by your understanding of my needs. Once again, thank you and may I wish you Succession Planning UK pensions can be taxed at 55% upon death, or cease altogether on second continued success for the future. death. Far superior benefits are available to your children and or other beneficiaries under the - Chris n system. www.bdhsterling.com

Why engage bdhsterling? Dual Licensed Advisers- the only firm with internal advisers licensed in both the UK and who specialise in UK Pension Transfers. Professional Indemnity Insurance Our internal advice is covered by professional indemnity insurance in both the UK and, affording our clients the highest level of consumer protection. Defined Benefit (DB) Specialists - New UK legislation requires members of Defined Benefit schemes to take advice from a UK FCA registered firm. Our advisers are licensed to provide this advice. Extensive Management Experience Over 100 years of combined management experience in investment industry. Additionally we have over a decade of experience in assisting clients who require advice on UK pension transfers. Additional Services In addition to pension transfer and wealth management advice, clients benefit from a range of additional integrated services such as accounting and tax, mortgages, investment property and property management. Experienced administration teams Located in both the UK and, our administration teams liaise with your schemes on your behalf and manage all aspects of you transfer. Between our global offices, we are able to work on transfers for 18 hours per day. Technical Expertise All of our senior management have worked in the pension transfer industry for at least a decade. We are the only firm that offers a Pension transfer Analysis prepared by UK licensed specialists that integrates with an n Statement of Advice (SOA). Larger Balance Specialists We specialise in transferring funds in excess of the contribution caps, offering multi-jurisdictional/multi-currency solutions. Some of our client s strategies will take over a decade to complete, requiring simultaneous management in both Autralia and offshore. Range of Pension Transfer Options In addition to our flagship full service, we offer a direct transfer service for clients that do not wish to take advice but would prefer to engage a purely administrative service to transfer their funds. FX Management The majority of QROPS super funds in engage banks to convert any pension transfers at retail banking rates. This means that most clients are incurring a FX conversion fee of between 4% and 5%. We use specialist providers who are able to pass on wholesale rates. Independence We are privately owned by the management team. Managing Exchange Rate Risk Currency risk is a significant concern for our clients and we have developed a range of GBP and other currency solutions. We have built a market leading QROPS super fund, whereby we can invest in a range of international exchanges and report in up to 12 currencies, all at half the cost of our competitors GBP portfolios. Some of our competitors use GBP deposit accounts which have almost no return at all. Nationwide offices in and office in the UK - So you can make appointments with us regardless of where you are migrating to. Recognised as QROPS industry experts - Having provided consultancy to numerous n financial planning firms as well as Superannuation funds. bdhsterling Fees The bdhsterling Commitment - Our clients will always know of their fees before any work begins so that they can always assess the cost vs benefits. Our fees are divided into:»» Pension Transfer Analysis Report (PTAR) fee - which is waived if a transfer is recommended and proceeds, and»» A Transfer fee (if you choose to proceed) which covers the cost of the entire transfer process and is taken from your UK pension fund. Next Steps Contact bdhsterling now to access your options UK Head Office 4 6 Church Street Epsom, Surrey, KT17 4NR United Kingdom T. +44 1372 724 249 F. +44 1372 723 554 Head Office (Ex. WA) GPO Box 4347 Melbourne, VIC 3001 T. +61 3 8631 0477 F. +61 3 8631 0465 WA Office PO Box 1377 West Perth, WA 6872 T. +61 8 6180 2555 F. +61 8 9321 8696 www.bdhsterling.com

General Advice Disclaimer The information which is summaried herein are not recommendations and are general in nature. They do not take into account your specific circumstances and they should not be acted on without full understanding of your current situation and future goals and objectives by a fully qualified financial advisor. In doing so you risk making commitment to a product and/or strategy that may not be suitable to your needs. n License (outside WA) bdhsterling Pty Ltd (ABN 65 169 977 413) is a Corporate Authorised Representative (No 462704) of Wealthsure Financial Services Pty Ltd. Wealthsure Financial Services is the n Financial Services License, No. 326450. The Wealthsure Financial Services AFSL applies to financial products only within, however please note that Property Investment, Tax and Accounting, Mortgages and Finance, Foreign Exchange, Migration advice (including Visas) and UK Financial advice are not considered to be financial products. All of our n financial advisers (outside the state of Western ) are authorised representatives of Wealthsure Financial Services (AFSL 326450) and adhere to the Association of Financial Advisers (AFA) Code of Ethics and Rule of Professional Conduct. n License (WA only) bdhsterling WA Pty Ltd (ABN 15 601 323 577) is a Corporate Authorised Representative (No 465560) of Oakwest Holdings Pty Ltd. Oakwest Holdings Pty Ltd is an n Financial Services Licensee, AFSL No. 222266. Although the Oakwest Holdings AFSL applies to financial products throughout, it will only be providing these services within Western. Please note that Property Investment, Tax and Accounting, Mortgages and Finance, Foreign Exchange, Migration advice (including Visas) and UK Financial advice are not considered to be financial products. All of our Western n financial advisers are authorised representatives of Oakwest Holdings Pty Ltd (AFSL 222266) UK License bdhsterling is a trading name of Global QROPS Ltd which is a company registered in England and Wales. Company Registration Number: 6849498. All of our UK based Financial Advisers, are authorised and regulated by the Financial Conduct Authority. Registration Number: 499460. www.bdhsterling.com

DATA COLLECTION FORM 1. RETURNING THIS FORM: Please complete these forms, print single sided, sign and date (black ink preferred) and return to one of the following offices via post, fax or email: bdhsterling - UK Head Office 4 6 Church Street Epsom, Surrey, KT17 4NR United Kingdom bdhsterling - Office (Ex.WA) GPO Box 4347 Melbourne, VIC 3001 bdhsterling - WA Office PO Box 1377 West Perth, WA 6872 2. FOR MORE THAN ONE FUND: COMPLETE A SEPARATE LETTER OF AUTHORITY FOR EACH FUND 3. CHECK BEFORE SENDING: Have all *MANDATORY details been supplied? Attach a recent statement from the UK pension fund/s (if possible) Has the Letter of Authority form/s been signed and dated? PERSONAL DETAILS *Name: *Date of birth: / / *MANDATORY *Address: *Best daytime contact telephone: *Email: Occupation: Married: No Yes If Yes, spouse s name: Date of birth: / / *Residence Status: Permanent OR Temporary OR n citizen *Date arrived in (or date of return for expats): / / *Date of ceasing United Kingdom residency: / / *Is your total n annual taxable income from all sources greater than $18,200? No Yes Have you made any Non Concessional (after tax personal) contributions to an n superannuation fund during the current or previous two n tax years? No Yes If Yes, please list the amounts and the dates they were made: Country you are resident of for tax purposes at time of completing this form: Date you became resident of that country for tax purposes: / /

LETTER OF AUTHORITY - PENSION TRANSFER IMPORTANT: If you have more than one fund you must complete a separate Letter of Authority - Pension Transfer form for each fund. Please copy this page as required TO WHOM IT MAY CONCERN Please accept this Letter of Authority as approval for you to provide any information relating to my policy and pension entitlements listed below, to the following company: bdhsterling UK Head Office 4 6 Church Street Epsom, Surrey, KT17 4NR United Kingdom T. +44 1372 231 190 F. +44 1372 723 554 bdhsterling - Office (Ex. WA) GPO Box 4347 Melbourne, VIC 3001 T. +61 3 8631 0477 F. +61 3 8631 0465 bdhsterling - WA Office PO Box 1377 West Perth, WA 6872 T. +61 8 6180 2555 F. +61 8 9321 8696 *MANDATORY *Full Name: *Date of birth: / / Maiden Name (if applicable): *National insurance Number: *Current Address: Last UK Address: *Name of UK pension fund or employer (if possible, please enclose a copy of your latest statement): Policy or Reference Number: Address of UK Pension Fund: UK Pension Type (please tick): OCC Final Salary OCC Money Purchase Personal AVC/SAVC SIPP/SSAS Other/Unknown *Signed: *Date: / / Please post my Transfer Value to my Financial Adviser detailed above. Disclaimer: bdhsterling is a Corporate Authorised Representative (No. 462704) of WealthSure Financial Services Pty Ltd ABN: 59 130 288 578 AFSL No. 326450. bdhsterling is a trading name of Global QROPS Ltd which is a company registered in England and Wales. Company Registration Number: 6849498. Financial Advisers, authorised and regulated by the Financial Conduct Authority. Registration Number: 499460. bdhsterling is a Corporate Authorised Representative (No 235235) of Oakwest Holdings Pty Ltd. ABN: 17 054 918 295 AFSL No. 222266.