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 unauthorized 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.
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.
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%.
Convenience
1. No requirement to buy an annuity
2. Flexible investment options with a lot less restrictions than in the UK
3. No money lost due to currency exchange rates
4. No Inheritance Tax
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
• Lifetime allowance form
• APSS 263
• Any other form as per fund manager requirement
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 an Indian Pension Provider through 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
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.
The following Indian pension products are registered as QROPS with HMRC:
• ABSLI Guaranteed Annuity Plus
• Bajaj Allianz Life Guaranteed Pension Goal
• Bajaj Allianz Life Saral Pension
• Canara HSBC Oriental Bank of Commerce Life Insurance Secure Bhavishya Plan
• HDFC Life Assured Pension Plan
• HDFC Life Click 2 Retire
• HDFC Life Guaranteed Pension Plan
• HDFC Life New Immediate Annuity Plan
• HDFC Life Pension Guaranteed Plan
• HDFC Life Smart Pension Plan
• HDFC Life Smart Pension Plus
• HDFC Life Systematic Pension Plan
• ICICI Pru Easy Retirement
• ICICI Pru Easy Retirement SP
• ICICI Pru Guaranteed Pension Plan
• Kotak Assured Pension Plan
• Kotak Lifetime Income Plan
• LIC's Jeevan Akshay — VII
• LIC's New Jeevan Shanti India
• Max Life Forever Young Pension Plan
• Max Life Guaranteed Lifetime Income Plan
• Max Life Smart Guaranteed Pension Plan
• Max Life Smart Wealth Annuity Guaranteed Pension Plan
• SBI Life — Smart Annuity Plus
• TATA AIA Fortune Guarantee Retirement Ready
• Tata AIA Life Insurance Fortune Guarantee Pension
• Tata AIA Life Insurance Saral Pension
• Tata AIA Life Insurance Smart Annuity Plan
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 a minimum investment amount. Like all the registered products of ICICI Prudential have a minimum premium amount.
There is no maximum limit, neither on the transfer, nor on the investment amount.
As there is no death tax in India, the entire amount will be distributed to the Named Beneficiaries.
No, not only is the transfer of pension funds to approved pension schemes in India tax-free, but you also nullify any loss that would potentially be incurred due to currency exchange rates and similar complications.
If the transfer proceeds and the new scheme is not HMRC-compliant you will be charged a minimum of 40% on the transfer plus an additional 15% for unauthorized withdrawal.
Our team of financial experts at QROPSdirect.in are well-versed in HMRC compliance and even provide training to a number of private banks on the subject. Please contact us to find the best compliant plan for you based on your age, vesting age, and risk profile.
While most websites and “agencies” claim it can take up to six months to complete the transfer, at QROPSdirect.in we can get the job done in a matter of 30 days.
Not only is the transfer of pension funds to approved pension schemes in India tax-free, but you also save money that would otherwise be spent on currency exchange rates and similar complications if you were to leave your pension in the UK.
While the official website features a number of schemes that appear to be QROPS approved, HMRC doesn’t take responsibility in ensuring that they are, it’s only after you actually apply does HMRC look into the matter. What this means is only a fraction of the so-called approved schemes meet all the requirements, contact us if your online application was rejected and have your pension transferred in 30 days.
In terms of investment opportunities, there are two basic categories for QROPS investors in India. The first one is fixed-income instruments where interest rates go up to 10.5% and returns are guaranteed. The other option is investing in equity where returns aren’t guaranteed but the sky is literally the limit. Investors looking to invest through a QROPS can invest in equity through ULIPS, which are basically equity funds or mutual funds issued by insurance companies.
If you return to the UK for a holiday or a short visit, your QROPS in India will remain unchanged. If you decide to move back to the UK permanently, however, your QROPS will be subject to UK laws and regulations.
