1. Who can transfer their pension into a QROPS?
Anyone having contributed into a Registered Pension Scheme in UK can transfer their fund into a QROPS. Whether the transfer can happen without tax charges depends on where the QROPS is established and which country the pension holder resides. You must speak to our experts to get more details. Click Here
2. Are you eligible for Pension Transfer?
If you have an occupational (work place) pension scheme, final salary scheme, defined benefit (DB) pension scheme, a SIPP (self-invested personal pension), SSAS (Small Self-Administered Scheme) or defined contribution (DC) pension scheme in the UK / Ireland and you are leaving the UK / Ireland to live in India or thinking of leaving UK / Ireland, you are entitled to transfer your existing UK / Ireland pensions to a QROPS (Qualifying Recognised Overseas Pension Scheme).
3. Can I Transfer Pension to India?
Transferring your UK / Ireland Pension to India - If you are an Indian, Non Resident Indian (NRI), Person of Indian Origin (PIO), Overseas Citizen of India (OCI) or a Foreign National residing in India and you have a Pension pot in UK / Ireland, you may be able to move your pension to a QROPS (Qualifying Recognised Overseas Pension Scheme) in India. Your pension portability will depend on what kind of pension you are invested into. Certain Public Sector Non Funded Defined Benefit Pensions (like NHS Pensions, UK) may not be able to transfer. Exide Life Golden Years Retirement Plan is a very popular QROPS set up in India.
4. Why is Exide Life Golden Years Retirement Plan most popular QROPS in India?
- Guarantee on accumulated capital each year in the policy
- Designed to provide attractive returns in long term
- Minimum 5% guaranteed interest on the Individual Pension Account
- Option to transfer multiple pensions into same policy by way of Top ups
- Fund growth of 9% since inception in Capital Guaranteed Plan
The transfer value, subject to the deduction of applicable charges, is invested in the “Capital Guaranteed Plan”. The investment objective of ‘Capital Guaranteed Plan’ is to provide guarantee on accumulated capital each year in the policy and provide long-term capital appreciation through investment in fixed interest securities as well as equity in appropriate proportions depending on market conditions from time to time. The accumulated capital will not decrease under any circumstance during the term of the policy.
5. Which Pensions policies in India meet all prescribed HMRC conditions to be QROPS?
Pension Policy offered by Exide Life Insurance – ‘Exide Life Golden Years Retirement Plan’ in India meets all HMRC conditions to be a QROPS. It meets the ‘The tax recognition test’, ‘The regulatory requirements test’, ‘The pension age and benefits tax relief tests’. Also as per the Scheme Rules of Exide Life Golden Years Retirement Plan, minimum 70% of the Transfer Value received is utilised to pay the member with pension guaranteed for life.
6. Are Pension Policies in India ‘recognised for tax purposes’ by the Tax Authority in India?
Pension Policies offered by Exide Life Insurance Company Limited in India such as ‘Exide Life Golden Years Retirement Plan’, ‘Exide Life One Advantage Retirement Plan’, ‘Exide Life My Retirement Plan’ and ‘Exide Life New Immediate Annuity with Return of Purchase Price’ are recognised by the Income Tax Department, Govt. of India for Tax purposes.
7. Who regulates QROPS in India?
A QROPS in India is a pension policy offered by a Life Insurance Company and also meeting certain requirements prescribed by the HMRC, UK. Such QROPS are administered by the respective Insurance Company and regulated by the ‘Insurance Regulatory and Development Authority of India’ (IRDAI). Pension Policies offered by Exide Life Insurance Company Limited in India such as ‘Exide Life Golden Years Retirement Plan’, ‘Exide Life One Advantage Retirement Plan’, ‘Exide Life My Retirement Plan’ and ‘Exide Life New Immediate Annuity with Return of Purchase Price’ are approved by IRDAI as Pension Scheme.
8. Can I take 100% of my QROPS fund as a lump sum?
No, QROPS is a Pension Policy designed to provide for your retirement with a pension guaranteed for life. However as per the regulations in India a Pension Policy can allow a Lump Sum payment of up to 33% (1/3rd) as a tax free commutation.
9. When can I access benefits from QROPS - Exide Life Golden Years Retirement Plan?
Any benefits can be paid from a QROPS to the policy holder, after they attain age 55. In a QROPS in India usually a lump sum of up to 1/3rd is paid in tax free lump sum and the balance 2/3rd is utilized to pay the policy holder with a guaranteed pension for life. In Exide Life Golden Years Retirement Plan a minimum of 70% of Transfer Value gets utilised to provide annuity guaranteed for life.
10. What happens to my Pension when I die?
Exide Life Golden Years Retirement Plan is a Pension Scheme listed by HMRC as QROPS suitable for Pension Transfer from UK. In this scheme if the pension holder dies, the nominee will have the following options to utilize the guaranteed death benefit:
- Utilize the guaranteed death benefit or any part of it to purchase ‘annuity with return of purchase price’ guaranteed for life
- Withdraw the entire guaranteed death benefit as a tax free lump sum
11. Do I have to live outside of the UK to transfer my pensions into QROPS?
You can transfer your pension into QROPS even while residing in UK. QROPS with Exide Life Insurance can provide a higher appreciation on your funds on a guaranteed platform and in a tax efficient manner. For those whose pensions are likely to breach the ‘Life Time Allowance’ in the future, transferring their pension pot into QROPS now can provide substantial tax benefits.
12. I may go back to the UK in the future, can I still benefit?
If you transfer your fund into a QROPS and return to the UK after five years, there is no obligation to transfer your fund back to the UK or pay any additional tax in UK. You may have significant tax advantages by remaining invested in India and avoid Inheritance Tax on the death benefit. India has a double taxation agreement with UK.
13. Do I have to pay tax on lump sum payment and income payments from QROPS?
You are eligible for up to 1/3rd of the corpus in lump sum on retirement which is tax free in India. What income tax you will pay on pension received from QROPS will be dependent up on the amount of Pension received. Exide Life as per the current income tax rules will not deduct any income tax at source when the pensions are paid.
14. I have a UK SIPP and I have already drawn some income – can I transfer?
Even if benefits have already been taken, you can transfer most registered UK pension schemes into a QROPS.
A QROPS can be similar to SIPP in that it allows you similar investment freedom and additionally it gives you the ability to base your pension outside of the UK. Exide Life Golden Years Retirement Plan set up in India can provide higher tax benefits and capital growth.
15. I have already transferred my QROPS to Malta. Can I transfer it to India?
Transfer from Malta QROPS - Yes you can and it is a simple process. You don’t need to inform your current adviser, they will be informed automatically by your QROPS trustees. Many QROPS holders have switched from Malta Schemes to India, as the Exide Life QROPS offers certain guaranteed returns and the prevailing interest rates in India are comparatively higher.
16. What is the overseas transfer charge in relation to QROPS?
The Overseas Transfer Charge is a 25% tax charge on transfer that became effective from the Spring Budget 2017, 9th March 2017, which may apply to transfers where the member arranging the transfer, and the QROPS, are not resident in the same country. This 25% charge could be refunded back to the member if they became resident, within 5 tax years, in the same country as the QROPS transferred to.
17. Can I transfer my UK State Pension to a QROPS?
It is not possible to transfer a UK State Pension entitlement. Also the amounts contributed only towards National Insurance (NI) cannot be transferred.
18. Can multiple pensions be transferred to a QROPS?
You can transfer pensions from your various pensions to consolidate multiple pensions within a QROPS.