UK pension transfers

Transferring your UK Pension Scheme Funds to the Huljich KiwiSaver Scheme

The Huljich KiwiSaver Scheme, including Mike Pero Saver* and NZF SuperKiwi*, is certified by HM Revenue and Customs as a QROPS Scheme (Qualifying Recognised Overseas Pension Scheme) and is able to accept transfers of UK Pensions.

To transfer your UK Pension just complete the Application Form and follow these steps. The process generally takes around three months to complete.

1. 1. The UK Pension holder must be a member of a qualified QROPS Superannuation Scheme, like the Huljich KiwiSaver Scheme. To join please read the Investment Statement and complete and return an Application Form to us.
   
2. 2. You will then have to provide information to the Huljich KiwiSaver Scheme, giving us details about the pension scheme from which you wish to transfer.
   
3. 3. Huljich will then contact your UK Pension Scheme and request the appropriate transfer forms and obtain a current transfer valuation.
   
4. 4. Huljich will receive this information and will then forward the relevant forms on to you to complete, you then return them to us to complete our QROPs requirements and we return them to the UK Pension Scheme.
   
5. 5. Your UK Pension Scheme will make a lump sum GBP payment to us and this will be immediately converted to NZD and deposited into your chosen Huljich KiwiSaver Fund.
   
6. 6. The whole process usually takes about three months and our service to you is free.
   

What happens to the money?

The funds will be invested into your chosen Huljich KiwiSaver Fund and subject to the existing rules of the Scheme. Huljich have three diversified KiwiSaver Funds for you to choose from - Conservative, Balanced or Growth. For more information please see the Investment Statement.

The Huljich KiwiSaver Scheme is a PIE (Portfolio Investment Entity) so your investment income is taxed at either 19.5% or 30% (as at November 2008 these "prescribed investor rates" of investment income are under review). Tax is calculated and paid on your behalf by the Scheme manager (to calculate your prescribed investor rate, please click here).

With limited exceptions, the funds will be locked in until you are eligible to withdraw from KiwiSaver (currently the later of reaching age 65 and completing five years' membership). There will be no further tax payable on withdrawal. You will be able to withdraw the money in a lump sum, or as incremental withdrawals.

What are the benefits of transferring?

Once your funds are transferred to a registered QROPS KiwiSaver Scheme they will be subject to the rules of that KiwiSaver Scheme, including being able to access your funds as a lump sum at NZ Superannuation age or (if later) when completing five years' membership.

Your funds will be managed in NZ rather than in the UK. You will have greater access to how your funds are performing and access to the fund provider in your own daytime. You won't have the problems of dealing with an overseas fund provider in another time-zone.

You will be able to manage your risk better as you will not be exposed to the foreign exchange risks of having your pension in GBP rather than NZD where you are living.

What you should know before you transfer

You can only transfer your UK pension to a NZ superannuation scheme or KiwiSaver scheme free of additional taxes, if that NZ superannuation scheme or KiwiSaver scheme has been certified QROPS compliant by HM Revenue and Customs. The Huljich KiwiSaver Scheme is QROPS certified.

You will then be subject to the KiwiSaver lock-in provisions, even if under the UK pension rules you may have been able to access the funds earlier. KiwiSaver funds are locked in until the later of NZ Superannuation age, currently age 65, or five years of membership of KiwiSaver. There are very limited (for example, financial hardship and serious illness based) early withdrawal facilities.

You risk extra taxes imposed by HM Customs and Revenue if you try to withdraw, or to transfer your funds to an unapproved scheme, during the "penalty period" imposed by HM Customs and Revenue. These taxes could be in excess of 40% of the original transfer value of the funds. The "penalty period" expires when you have no longer been a UK tax resident at any stage during the previous five UK tax years (6 April to 5 April) or at any stage during the current UK tax year.

A transfer from a UK Pension scheme to a QROPS is a benefit crystallisation event. So if the amount of the transfer is over your remaining lifetime allowance, a lifetime allowance charge will be levied. However, because the payment is not to you as an individual, the rate charged will be 25%, not 55%, despite the fact that the end benefit from the QROPs will be a lump sum. This means that the amount in your UK pension scheme which exceeds the lifetime allowance (currently GBP1.65m, rising to GPB 1.75m in 2009/2010, then GBP 1.8m in 2010/2011) will be reduced by 25% when transferred.

This section of our website contains only certain high-level information, current as at November 2008. The QROPs rules are subject to change (which could be adverse). For up-to-date advice you should check the current rules at www.hmrc.gov.uk/pensionschemes, (and in any case you should talk to a professional tax adviser, for advice relevant to your own circumstances).
We cannot promise that the Huljich KiwiSaver Scheme will retain QROPs status for all time. If it does not have QROPs status, you may have more UK tax to pay on funds transferred to the Scheme.

* Mike Pero Saver is the brand used to distribute the Huljich KiwiSaver Scheme through Mike Pero (New Zealand) Limited, and NZF SuperKiwi is the brand used to distribute the Huljich KiwiSaver Scheme through NZF Group Limited.