Qualifying Recognised Overseas Pension Scheme (QROPS)
For any queries you may have regarding our QROPS pensions please look through our Frequently asked questions section
- Am I eligible for a QROPS?
- What sort of pension can be transferred to a QROPS?
- Can I transfer my UK State Pension to a QROPS?
- Can a QROPS receive pension transfers from outside of the UK?
- Can more than one pension be transferred to a QROPS?
- What are the investment options?
- At what age can I access my pension?
- What form do pension benefits take?
- How are my pension benefits taxed within a QROPS?
- Which QROPS jurisdictions does Sovereign offer?
- Is financial advice required?
Am I eligible for a QROPS?
Any non-UK resident (or UK resident with plans to leave the UK) is usually eligible to establish a QROPS regardless of their nationality.
Consideration must be given as to the most appropriate jurisdiction in which to establish the QROPS. This will depend on the individual’s country of residence and future plans.
What sort of pension can be transferred to a QROPS?
It is possible to transfer most types of UK registered pension scheme to a QROPS. This includes both individual pension plans and employer sponsored pension schemes.
It is not usually possible to transfer a pension that has already been converted to an insurance company annuity or a defined benefit pension that is already in payment.
Can I transfer my UK State Pension to a QROPS?
No, it is not possible to transfer a UK State Pension entitlement.
Can a QROPS receive pension transfers from outside of the UK?
Yes, but only if the rules of the other pension scheme permit the transfer to the QROPS.
Can more than one pension be transferred to a QROPS?
Yes, it is possible to consolidate multiple pensions within a QROPS.
What are the investment options?
This will depend on the operating jurisdiction of the QROPS. However, QROPS generally allow investment into a broad range of assets including collective investment funds, government and corporate bonds, cash deposits, equities and commercial property.
Prohibited investments include residential property, tangible moveable assets such as antiques and art work, personal loans and wasting assets.
At what age can I access my pension?
The earliest age at which QROPS benefits may be accessed is 55.
What form do pension benefits take?
The QROPS will usually offer a pension commencement lump sum (PCLS) of up to 30% of the value of the pension fund. The balance of the pension fund is usually applied to provide a drawdown pension.
There is never any requirement to convert the pension to an insurance company annuity and the fund may remain invested throughout retirement.
How are my pension benefits taxed within a QROPS?
This will depend on the QROPS operating jurisdiction and the pension scheme member’s country of residence when pension benefits are received. Any PCLS will not be taxed at source but could be subject to tax in the recipient’s country of residence.
Which QROPS jurisdictions does Sovereign offer?
Sovereign offers QROPS from Isle of Man, Malta and Gibraltar. Once the QROPS is established it is possible to transfer seamlessly within the Sovereign QROPS range without charge.
Is financial advice required?
Yes, we recommend that any individual contemplating a pension transfer should take specialist advice prior to commencing the process.