Thursday 19 September 2013

Pensions Transfer Process for Professionals relocating from UK

What is QROPS?
A QROPS (Qualifying Recognised Overseas Pension Scheme) is a way of moving your UK  pension arrangements to a scheme administered outside the UK, which is more flexible & easily accessible for people who have retired abroad or are planning to do so. 

What is LIC's Jeevan Akshay-V1 scheme?
It is an immediate annuity plan, in which you start receiving pensions as soon as your UK  pensions transferred & LIC's pension policy commences in India. You will receive pensions till your life time. In the event of a mishap, your spouse or other nominated beneficiary will get entire transferred corpus back as tax free lump sum. Or you can choose an Annuity Option that makes provision for life time pensions for your nominated beneficiary on your demise. In addition there are still eight alternative Annuity Options to choose from.

What are the steps involved in the pension transfer?
 
Step1: Mandate to UK Pensioner requesting to dispatch CETV to QROPS Scheme Manager.

Step2 : On receipt of set of forms (CETV) from UK Pensioner, the QROPS Scheme Manager will be returning them duly filled with the required details to UK pensions authorities.

Step 3: UK Pensioner will be transferring the Corpus directly to LIC’s bank Account through Wire Transfer, under intimation to the client.

Step 4: On receiving the Corpus to LIC bank Collection A/c, the bank authorities ask the Scheme Manager  to submit the prescribed Disposal Form giving complete details of the transaction.

Step 5: On Submitting the prescribed Disposal form to the bank, the Forex Department of the bank will convert the Currency at the prevailing Exchange rate as on that day.

Step 6: The receipt for the transferred Corpus after conversion (premium) will be drawn in the Client name from the Accounts Department.

Step 7: Jeevan AkshayV1 Policy will be completed instantaneously, which gives the client unabated guaranteed life time income immediately .

Step 8: Finally the Client will receive a communication from UK Pensioner over post confirming the transfer of UK pensions to LIC’s Jeevan Akshay V1.


Case illustration
Client 1: Mr A, 35 year old Software Professional, worked in the UK for 7 years as a Sr Staff Design Engineer    and contributed into the UK pensions with One of the UK pensioners. He left the UK & settled in India for good. Now he was in a quandary as to how to deal with his UK pension rights. With his authority, we obtained the relevant information from UK Pensions authority and the total amount accumulated was in excess of £80,000. It became apparent considering the impact of UK Inheritance tax rules as well as few other important factors which increased the likelihood of a transfer to a QROPS in India being in his best interest. After completion of the transfers now Mr A is receiving Guaranteed immediate Pension of Rs 5,69,600(INR) per annum from LIC’s Jeevan Akshay V1 pension Scheme. He could receive this amount either annually, half yearly, quarterly or monthly. In addition, there will be no liability to UK Inheritance Tax and his nominated beneficiaries will receive the entire transferred fund direct on his demise, with no requirement for probate.

Client 2: Dr B, 45 year old Paediatrician  Worked in Scotland & England and contributed to both NHS pensions in England & SPPA(Scotland Public Pension Agency) in Scotland. Now She had left both UK & Scotland but still working in Singapore. Dr B wanted to transfer her both NHS & SPPA Pension rights to a QROPS in India. With her authority, we approached both NHS & SPPA & obtained the relevant information from both the Pensioners and the total amount, accumulated was in excess of £1,50,000 . On Completion of the transfer, we were able to Consolidate Pension rights of both NHS & SPPA to One LIC’s Jeevan Akshay V1 Pension scheme. Now Dr B is receiving Guaranteed immediate Pensions of Rs 9,33,000(INR) from LIC’s Jeevan Akshay V1 pension Scheme for the above mentioned pensions Corpus transferred. In addition, there will be no liability to UK Inheritance Tax and his nominated beneficiaries will receive the entire transferred Funds direct on his demise, with no requirement for probate.

Client 3: Mr C wants to relocate to India after 3 months, but wanted to take advantage of the ££ value(Current Exchange rate) and opted out of UK pension scheme while being in UK. With his authority, we initiated Transfer process & successful in transferring his UK pension rights to LIC’s Jeevan Akshay V1 whilst he is in  UK and he is able to took advantage of the Current Exchange rate. In addition Dr C is enjoying all the benefits of the scheme that has been illustrated in the above two case studies.

The sequence in brief

1.      I explain the scheme, work out the benefit illustration and answer your queries
2.      Collecting documents, sending by speed post to UK, tracking it.
3.      Receipt of forms from UK with calculation of corpus amount. I will process them and get them signed by client, send them back to UK
4.      Transfer of corpus amount from UK to LIC.

Documents needed
1.      Jeevan Akshay application form
2.      Two Passport size colour photos
3.      PAN card photocopy
4.      Address proof in India (Utility bills/ Bank Statement/ Ration card, Letter from bank etc..)
5.      A Cancelled Cheque Leaf

  Who am I?
Let me introduce myself. I am Ravi kumar I have been working as a Financial Advisor for more than 5 years. I have been instrumental in transferring pension for relatively good number of doctors & other professionals who have relocated from UK to India. I promise to offer quality service & my service covers existing Pensions review, Free QROPS Consultations & Guide, Transfer Recommendation Report and much more.

Please contact me for an informal chat about the transfer scheme with my following Contact details.

Mr Ravi Kumar. Financial Advisor (Code: 02777603), Life Insurance Corporation Of India
Off: Civil Station East branch (C.B-5-603), Ground floor, Oriental building, M.G Road, Bangalore-560 001.Cell:     +91 9844519872, +91 9980927393
                              Email:  ravi.sampige@gmail.com

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