QROPS or Qualifying Recognised Overseas Pension Scheme, is an overseas pension scheme that is in compliance with specific guidelines and requirements set by HMRC or Her Majesty’s Revenue and Customs. Such compliant schemes are eligible to receive transfers from United Kingdom (UK) Pension Benefits without incurring any unauthorised payment or scheme sanction charges. This greatly benefits Indians who have worked in the UK and want to move back to India. Since they have made regular contributions towards a pension fund in the UK, the government allows them to transfer their pension funds to compliant pension schemes in India registered as QROPS.
When was the QROPS legislation introduced?
In April 2006, the HMRC introduced QROPS for individuals with UK pensions who are moving permanently away from the UK and would like to take their pensions with them.
What are the key benefits of a QROPS Pension Transfer?
• Tax efficiency
1. Easier to keep track of taxes and regulations.
2. Avoid UK income tax on pension and distribution which is as high as 40%, as well as death tax which is up to 55%.
3. No capital gains taxes on investments.
• Investment opportunities
1. Opportunity to invest in one of the world’s top 10 stock markets.
2. Opportunity to invest in fixed interest schemes with guaranteed interest rates of up to 10.5%.
1. No requirement to buy an annuity
2. Flexibile investment options with a lot less restrictions than in the UK
3. No money lost due to currency exchange rates
4. No Inheritance Tax
When can you opt for QROPS?
You can opt for QROPS if you have a pension fund in the UK which you wish to transfer to India, under the condition that the Indian pension fund you choose to transfer to, is registered as QROPS with HMRC.
The following pension schemes are eligible for QROPS transfer:
● Occupational scheme
● Final salary scheme
● Defined benefit scheme
● Defined contribution scheme
● Self-invested personal pension scheme
● Small self-administered scheme
The forms that are required are Cash Equivalent Transfer Value (CETV) forms which include:
● Transfer Quotation
● Transfer out discharge forms
● Life Time allowance form
● APSS 263
● Any other form as per fund manager requirement
What is the QROPS transfer process?
While most websites will tell you this can take up to 6 months, contact us to get your pension transferred to India through QROPS in 30 days or less.
The following are some standard steps we take to get your pension transferred as soon as possible.
● Register yourself with us.
● Apply for cash equivalent transfer value form (CETV) from the UK Fund House
● Submit Fund House Docs, KYC, HMRC Forms & Customer Declaration to Indian Pension Fund House.
● Obtain QROPS Transfer application from Indian Pension Fund House
● Transfer of funds from UK Fund House to Indian Pension Fund House
Who can apply for a QROPS?
Anybody who is in the age group of 18 to 75, has worked and accrued UK pension, especially Indians and are currently living outside the UK, or intend to leave in the imminent future.
Which products of Indian Pension Fund House are registered with HMRC as QROPS?
The following Indian pension products are registered as QROPS with HMRC:
Canara HSBC Oriental Bank of Commerce Life Insurance Secure Bhavishya Plan
Exide Life Golden Years Retirement Plan
Exide Life My Retirement Plan
Exide Life New Immediate Annuity
Exide Life New Immediate Annuity with Return of Purchase Price
Exide Life Smart Pension Plan
HDFC Life Assured Pension Plan
HDFC Life New Immediate Annuity Plan
HDFC Life Pension Guaranteed Plan
ICICI Pru Easy Retirement
ICICI Pru Easy Retirement SP
ICICI Pru Immediate Annuity
Kotak Lifetime Income Plan
SBI Life – Annuity Plus
What is the minimum amount which can be transferred?
A minimum of one lakh or one hundred thousand INR can be transferred through QROPS. Additionally, the receiving scheme form the Indian Pension Fund House may have minimum investment amount. Like all the registered products of Pension Fund house have a minimum premium amount.
What is the maximum amount which can be transferred?
There is no maximum limit, neither on the transfer, nor on the investment amount.
What will happen to my QROPS Pension Transfer upon my death?
As there is no death tax in India, the entire amount will be distributed to the Named Beneficiaries.