QROPS PENSION TRANSFER

Visa questions, companies, work permits, employment, insurance, banking and finance, and legal issues.
SPONSORS: Chavalit & Partners : AA Insurance
PET
Ace
Ace
Posts: 1394
Joined: Mon Jun 25, 2007 4:24 pm
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by PET » Wed Jul 06, 2011 7:00 am

Veronica Mc wrote:We applied for our Qrops pension in December and was told we would receive it in April, its now July and we have still not received it....we was told April then May then June, then 1st July, and now been told it been sent to Aussie then they send it onto us, but they have no idea when this will be......So if any folks decide to do this be prepared for a very long wait!!! they also take 250 euros (in our case) to set up then 8% of the income :cuss:

When you say you applied, who was this too.

I am told the system is that your existing Trustees would transfer the funds to the bank say, that is to operate the Qrops, who will then take over the investment in accordance with your particular instructions. This should take days and not even weeks ?
VERAX - What matters in life is not where you are from but where you are going.

User avatar
paulsimkiss
Amateur
Amateur
Posts: 28
Joined: Wed Feb 09, 2011 10:10 am
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by paulsimkiss » Wed Jul 06, 2011 12:18 pm

Hello Veronica

If that's the case you should give more detail and name and shame whoever is at fault. You cannot say to everyone don't bother with a QROP because yours is being badly handled.

I generally deal with Guernsey Retirment Plan. The lenght of the process varies. It can be a couple of weeks or it can take a few months - depending upon complexity and number of pension trustees involved.

Guernsey Retirement Plan Charges Schedule

Non-fee based consultation/assessment of pension

GBP 1250 - initial one off, set-up cost of the Trust Bond (incl. 3 transfers-in)

GBP 1250 min or 0.4% of fund value to a GBP 2500 max - annual Trust fees.

You don't write a cheque for the fees, they are simply deducted from the pension monies.

PET
Ace
Ace
Posts: 1394
Joined: Mon Jun 25, 2007 4:24 pm
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by PET » Wed Jul 06, 2011 5:09 pm

Close Bros in Guernsey were charging an establishment fee of £300 and an annual Fee of £300 providing you invested in funds run by them, but these would increase if you wanted to invest in outside stocks, funds etc
VERAX - What matters in life is not where you are from but where you are going.

poosmate
Ace
Ace
Posts: 1045
Joined: Sat Jun 12, 2004 7:30 pm
Location: hua hin

Re: QROPS PENSION TRANSFER

Post by poosmate » Wed Jul 06, 2011 6:01 pm

so one is 2500 pounds and one is 600 :shock:
Why the big difference?
no more dePreston

petercr
Member
Member
Posts: 89
Joined: Wed Mar 05, 2008 4:59 pm
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by petercr » Wed Jul 06, 2011 7:26 pm

The normal financial services industry ripoff

Most are very reluctant to make their charges clear and easily understood. You can understand why when you see the true level of charges in B&W :roll:

Veronica Mc
Rookie
Rookie
Posts: 21
Joined: Sat Jul 02, 2011 1:17 am

Re: QROPS PENSION TRANSFER

Post by Veronica Mc » Thu Jul 07, 2011 12:05 am

We are with IOS ( International offshore services) ..I did not mention for people not to use QROPS I simply said

(So if any folks decide to do this be prepared for a very long wait!!! they also take 250 euros (in our case) to set up then 8% of the income )

I would advise people to release the pension if they can as you may as well use it now while your active and enjoy it, just not the company we used!!!

I was actually wrong on the 8% It is now......see below

We write to confirm that all QROPS provider commissions have increased to 8.5% on all transfers with a fund value over £25,000.

Hopefully one day we will receive it !!

Veronica Mc
Rookie
Rookie
Posts: 21
Joined: Sat Jul 02, 2011 1:17 am

Re: QROPS PENSION TRANSFER

Post by Veronica Mc » Thu Jul 07, 2011 1:46 am

PET wrote:
Veronica Mc wrote:We applied for our Qrops pension in December and was told we would receive it in April, its now July and we have still not received it....we was told April then May then June, then 1st July, and now been told it been sent to Aussie then they send it onto us, but they have no idea when this will be......So if any folks decide to do this be prepared for a very long wait!!! they also take 250 euros (in our case) to set up then 8% of the income :cuss:

When you say you applied, who was this too.

I am told the system is that your existing Trustees would transfer the funds to the bank say, that is to operate the Qrops, who will then take over the investment in accordance with your particular instructions. This should take days and not even weeks ?

We are with IOS ( International offshore services)...they said 12 weeks and we are still waiting , now we are up to 25 weeks. :banghead:

User avatar
margaretcarnes
Rock Star
Rock Star
Posts: 4187
Joined: Wed Jan 02, 2008 8:28 am
Location: The Rhubarb Triangle

Re: QROPS PENSION TRANSFER

Post by margaretcarnes » Thu Jul 07, 2011 6:57 am

paulsimkiss wrote:Do you Qualify for a QROPS Pension Transfer?

Anyone with a current or frozen pension in a European Union country, now living overseas as an expatriate or who is planning to live overseas as an expatriate within the next 12 months, can qualify for a QROPS Pension Transfer.

You will need to meet the following criteria:

You need to be between 18 and 75 years of age

You will need to be a non-tax resident for five, consecutive tax years

You need to have a private pension, as opposed to a state pension

You have not taken an annuity on your pension



You have not yet taken a payment from your 'final salary' scheme pension

Paul Simkiis IFA Email paul@globalinvestments.net http://www.qropdirect.com Tel Hua Hin 032 827 727

Does this apply to UK Civil Service pensions?
A sprout is for life - not just for Christmas.

User avatar
paulsimkiss
Amateur
Amateur
Posts: 28
Joined: Wed Feb 09, 2011 10:10 am
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by paulsimkiss » Thu Jul 07, 2011 11:05 am

On March 11, 2011 QROPS provider Close Brothers sold all trust, fund administration, asset management and banking business in Jersey, Guernsey and the Isle of Man to Kleinwort Benson for £29.1 million.

The sale is expected to generate a loss on disposal of approximately £24.7 million.

Would you have wanted your QROPS with them?

User avatar
bradford
Rookie
Rookie
Posts: 14
Joined: Sat Jun 04, 2011 2:17 pm

Re: QROPS PENSION TRANSFER

Post by bradford » Thu Jul 07, 2011 11:39 am

Spot on Guru. Why £2500 to £600. I have a mate down the pub, he says you can get a QROPS with no fees at all. They even give you a grand back. Not in cash but on paper. Its in Athens, Greece. I have not found the website yet but I will let you know later. My mate says its Madoffholdings. Cheapest always best, who's gona pay £2500 they must be mad. :D

poosmate
Ace
Ace
Posts: 1045
Joined: Sat Jun 12, 2004 7:30 pm
Location: hua hin

Re: QROPS PENSION TRANSFER

Post by poosmate » Thu Jul 07, 2011 1:49 pm

I went to see the man at the pub :wink: He had sold out of the Greece thing and advised me to forget the QROPS especially at 2500 quid:

We have completed extensive research into the different QROPS providers in the market and at the moment the biggest disadvantage we can see is set up and ongoing cost. The market is very similar to the SIPP market a decade ago, and we expect these costs to drop over the course of the next few years.

As there are no real significant advantage to a QROPS over a SIPP before you start to take benefits. Therefore, given the current increased costs of setting up a QROPS, a SIPP is in general a more viable option. The below table shows the typical cost of a SIPP Vs QROPS
Fees SIPP QROPS
Set Up Fee 295 995
Annual Fee 250 995


Benefit Fees SIPP QROPS
Calculation fee 145 0
Transfers out 250 0
Regular Income Payment 145 0
Annuity purchase 145 0
Death benefits 500 0

Overall the cost of the SIPP is far cheaper than a current QROPS. If over a 5 year period you can see how much this difference is.
1st 2nd 3rd 4th 5th Total
SIPP 545 250 250 250 250 1,545
QROP 1,990 995 995 995 995 5,970

This can add up on the smaller amounts and for the extra cost there is no actual added benefit.

Both the SIPP and the QROP can use an offshore investment bond as the platform for the investments so the cost of this is comparable. When you come to transfer the scheme from a SIPP to a QROP the investments do not need to be cashed in but are transferred as an inter specie transfer. This means the investment strategy does not need to be changed when the structure is changed. The cost of this would be £250.
Summary

Unless you are about to retire and take your pension then a SIPP would certainly be a better alternative than a QROPS at the current time. Until the costs come down to a reasonable comparison the option is very clear.

Thanks Bradford :cheers: I was not that interested but was curious to know why such a big price difference. I am now better informed about the selling of this product.

Buyer beware it seems: http://www.telegraph.co.uk/finance/pers ... sions.html
no more dePreston

User avatar
malcolminthemiddle
Professional
Professional
Posts: 499
Joined: Sat Mar 05, 2005 1:56 pm
Location: Here,there and everywhere

Re: QROPS PENSION TRANSFER

Post by malcolminthemiddle » Thu Jul 07, 2011 2:24 pm

paulsimkiss wrote:On March 11, 2011 QROPS provider Close Brothers sold all trust, fund administration, asset management and banking business in Jersey, Guernsey and the Isle of Man to Kleinwort Benson for £29.1 million.

The sale is expected to generate a loss on disposal of approximately £24.7 million.

Would you have wanted your QROPS with them?
What protection do investors have if their offshore QROPS provider does goes bust? If it happened to Close Brothers could it not happen to any one of them?

PET
Ace
Ace
Posts: 1394
Joined: Mon Jun 25, 2007 4:24 pm
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by PET » Thu Jul 07, 2011 5:30 pm

malcolminthemiddle wrote:
paulsimkiss wrote:On March 11, 2011 QROPS provider Close Brothers sold all trust, fund administration, asset management and banking business in Jersey, Guernsey and the Isle of Man to Kleinwort Benson for £29.1 million.

The sale is expected to generate a loss on disposal of approximately £24.7 million.

Would you have wanted your QROPS with them?
What protection do investors have if their offshore QROPS provider does goes bust? If it happened to Close Brothers could it not happen to any one of them?

Close Bros did NOT go bust they merely sold an assets in the Channel Islands. They are a large UK bank who have an excellent Financial Statement and have been operating for some 130 years.

Kleinwort Benson are a very successful UK merchant bank.

Your QROPS would be very secure with both of these banks.
VERAX - What matters in life is not where you are from but where you are going.

User avatar
bradford
Rookie
Rookie
Posts: 14
Joined: Sat Jun 04, 2011 2:17 pm

Re: QROPS PENSION TRANSFER

Post by bradford » Fri Jul 08, 2011 1:20 pm

Hi Guru thanks for all that about QROPS vs SIPP.

I know I am a bit thick. Are you saying its just cheaper to set up and manage a SIPP than a QROPS. I think I got that bit. Are you also saying do a SIPP only if you are not taking retirment yet. Then later change the SIPP to a QROPS? Or are you saying a SIPP is better and cheaper than a QROP and just stay with the SIPP forever. This is very important information and people need to understand it clearly and get it right. Including thick me.

Also is the following true or false.

Income Tax. SIPP DEDUCTED AT SOURCE. QROP PAID GROSS.

If you die.
Inheritance tax free. SIPP-NO. QROP-YES

PRE AGE 75. SIPP 35% TAX CHARGE. QROP 0% TAX CHARGE.

POST AGE 75. SIPP UP TO 82% TAX CHARGE. QROP 0% TAX CHARGE.

GURU. If you were lets say 65 years old, taking retirment now, non UK resident over 5 years, had a frozen UK pension with Zurich UK of £200,000 would you take a UK ANNUITY or a SIPP or a QROPS? We all value your advice.

petercr
Member
Member
Posts: 89
Joined: Wed Mar 05, 2008 4:59 pm
Location: Hua Hin

Re: QROPS PENSION TRANSFER

Post by petercr » Fri Jul 08, 2011 2:57 pm

[
GURU. If you were lets say 65 years old, taking retirment now, non UK resident over 5 years, had a frozen UK pension with Zurich UK of £200,000 would you take a UK ANNUITY or a SIPP or a QROPS? We all value your advice.[/quote]

Careful Bradford!! Every financial advisor and in Thailand will be running to give you advice :roll:

Post Reply

Who is online

Users browsing this forum: No registered users and 4 guests