Bringing UK pension into Switzerland and QROPS

Finance, Taxes, Banking, Insurance and Retirement
81
The only benefits I need from a QROP is the right it confers to transfer the pension value from the UK to my Swiss employer's pillar 2 without HMRC penalties, which should give me 2 things:

- The right to access the funds for a house purchase

- Extra years of pensionable service

For the transfer to be allowed, the receiving company pension is required to be a QROP.

I'm not sure about the growth argument. Growth in the existing UK FSAVC is determined by the performance of the investment funds and charges.

And, it's future relevance to me is also affected by where I am living at retirement date and currency exchange rates if I'm not UK resident.

82

A QROPS which a financial advisor will sign you upto not allow you to take money out to buy a house, but it would let you take 25% take free lump sum at the age of 55.

Regarding growth in the current UK FSAVC you are unable to choose and invest in funds of your choice in a QROPS you are

83
As I understand it, growth rates is not relevant for a DB scheme. The percentage of final salary paid as pension on retirement will be determined by the number of years pensionable service I've accrued (or bought!).

However, I suspect it's not so unusual for an organisation to wind up a scheme, which is something else I experienced in the UK after 14 years pensionable service in a DB scheme from my first employer.

For this reason, I suspect I have no guarantees.

84
You are right and wrong there, as the DB scheme company has to invest the money to get the returns, if they lose money on the investments it means your fund value will go down.

As for winding up schemes it seems to be happening a lot lately. And sometimes the DB scheme will be to good to transfer, so you need proper advice and then after that advice get an independent report to confirm what the IFA has said.

85
Swans1984.

No he asked about bringing his pension into his Swiss second pillar which is QROPS registered.

The figures you quote about "a QROPS" fee structure are BS. I would be amazed if the OPs employer chrarged him anything remotely of this order.

86
Well i can tell you now a Momentum QROPS set up fees are 645 then 645 a year plus then the AMF for the funds, thats sterling.

I you think that is Bull, send me an email and i will prove it to you

87
Are you confusing making addition contibutions to bring you contibution upto the ceiling permited by you current pensionable salary and contibution rate?

This is not the same as buying extra years of DB rights. You are right DB schemes are rare in CH and make up on 5-10pct of shemes but do exist.

88
Swans 1984. More misinformation from you im afraid. In a DB sceme it is the funding employer that has the obligation to make funds available to pay the benefits based on your final salary. Of course there are scenarios where the employer cannot meet these obligations. But this is radically different from the direct exposure to markest forces of a DC scheme. The vast majority of DB schemes have been closed to future benefit accruals, this is very different from being wound up.

89
Im sure you can pay that much. That is not the same as it having to cost that much. Please stop insulting our intelligence on this forum.

90
But for a proper QROPS, where you can choose your own investments thats the costs and thats one of cheapest apart from Th beers STM one

Im not on about the ones banks do or pillar 2 ones.

Not insulting just say the costs do some research first as a finance professional should do

91
Clearly "self administered" pension fund solutions may cost that much and are more suited to larger investments. But the OP is just interested in rolling up his UK DC legacy savings into his Swiss second pillar.

Please desist from using "qrops" as a label for only this sort of scheme. I can chose the risk profile of the investments in my second pillar which also happens to be a Qrops listed fund.

92
Hi guys

I have read a billion threads about this but still confused.

I have a UK company pension from Towers Watson which I want to move to Switzerland. One thought is to use it in a few years to buy a house.

But my new company in CH uses Axa Winthertur for the BVG (if I understand correctly that's the 2nd pillar) which by searching for it seems like it is not QROPS compliant so I can't move them.

If I can't move them to my employer's scheme, then other options are to move it to Liberty's scheme which is QROPS but I need to wait 10 years to access it (thats how long UK taxman wants to consider me out of the country and free to mess with it)

Am I stuck? Is there no way to move my UK defined contribution pension to a scheme in CH that will allow me to access it for a house purchase without waiting 10 years?

Seems like a big problem for me. I guess changing jobs in a few years might help but I am looking for a short-term solution.

Any advice is welcome