“Exide Life Wealth Elite” - A Unit linked Insurance Plan that recognizes the importance of your life goals and helps you fulfil them.

I  would like to take this opportunity to give a brief about Exide Life Insurance...

Exide Life Insurance Company Limited, (Formerly known as ING Vysya Life Insurance Co. Ltd) is a 16 Year old established and profitable life insurance company, head quartered in Bengaluru. The company is 100% owned by Exide Industries Limited. The company serves over 15 lakh customers and manages assets of over INR 11000 Crores. During the financial year 2016-17, the company achieved Total Premium Income of over INR 2,400 crores and delivered INR 112 crores in Profits (PBT). 

To speak about this unique product “Exide Life Wealth Elite” is a market linked insurance plan designed for a special exclusive High Networth Individual customers.

Benefits which this plan offers

·         Choice of 7 fund options including the new Exide Life Mid Cap Fund

·         Comprehensive Life Cover of up to 20 times the Annualized premium.

·         Automatic Asset Rebalancing Strategy - this strategy reduces your equity proportion as your policy nears maturity to ensure that any downside in equity market later in the policy term has minimal impact on your maturity amount.

·         Partial Withdrawal Benefit - this policy allows unlimited number of partial withdrawals from your fund at any point of time after completion of 5 Policy Years for any interim financial goals or emergencies.

·         Option to surrender the policy any time after completion of 5 years.

·         Tax benefits on all withdrawals/ surrenders/ maturity/ claims u/s sec 10.10.D would be 100% tax free.

·         Unlimited free switches are allowed during the policy term between the choice of 7 fund options

·         No Premium Allocation charges in first year for premiums of above 5 Lacs

·         SYSTEMATIC TYRANSFER PLAN

Out of the above mentioned policy features, following two are the most unique features that works in favor of the investor.

1)      Systematic Transfer Plan

2)      Policy Costs/Charges

1)  Systematic Transfer Plan : One may be aware of ‘Systematic Investment Plan’(SIP) concept  in Mutual Funds investment. SIP concept is so much popular because of its very nature of Systematic investments. The purpose of choosing SIP mode instead of One time investment option, is to average out units over the period of time. That means, it is not good practice to push the money at one shot into equities since equity market is so fluctuating & market may fall very next day of investment made resulting even loss of capital invested too. So among MFs, SIP mode is recommended. So that instead of investing at one shot, the same will be splited among number of months & invested the fixed amount monthly on regular basis systematically irrespective of equity market fluctuations. So that our investment meets almost all market trends since investment is regular, resulting an investor ends up buying more number of units when market is down & at the same time more value is reflected for the allotted units when market is up , working in favor of investor in all the market conditions. These further results in accumulating more number of units at the end of the year comparatively to one time investment done by others.  This is called ‘Units Average Costing’. The equity market witnessed bullish(rise) only over the period of time irrespective any amount of fluctuations in the past.

There is one more mode of investment called “ Systematic Transfer Plan”(STP) which is unique & works better than ‘Systematic Investmetn Plan’(SIP).  We can find this STP mode in “Exide Life Wealth Elite” . In STP mode an investor can expect more ‘Units Average Costing’ than SIP mode & can expect more returns & safety of capital invested than SIP mode of investment.

STP strategy ensures equity exposure in a more systematic manner. Under this strategy the allocated premium is invested in ‘Exide Life Preserver Fund’ which is a Debt/liquid orientated fund starting immediately & there after every month, pre-defined proportion of units is transferred from the ‘Exide Life Preserver Fund’ into equity oriented scheme like  ‘Exide Life Prime Equity Fund/Exide Life Mid Cap Fund’ etc. You should understand that, Debt oriented funds like, Preserver Fund are not risky in nature for the capital parked in it. Instead, the debt/liquid oriented funds are delivering average returns of above 8 to 8.5%  YoY.

So, under STP mode,  firstly the investors money is parked in the safer fund like ‘Exide Preserver Fund’ which also earns average returns of above 8 to 8.5% . By doing this it is ensured that there is no market risks, even if equity market falls soon after investing the money with Exide scheme. Later, a , pre-defined proportion of units is transferred from the ‘Exide Life Preserver Fund’ into equity oriented scheme like  ‘Exide Life Prime Equity Fund/Exide Life Mid Cap Fund’ etc in a systematic manner. This second step ensures, allotment of more number of equity units comparatively to both One shot investment & SIP mode too via ‘Units Average Costing’. Because, Investment of fixed amount  is made into equities in a systematic manner for a long term meeting all most all market fluctuations. This ensures allotments of more units when market is down & reflection of more value when market is up finally leading to more ‘Units Average Costing’ under STP mode than SIP mode. Because, under this strategy investor will earn from both Debt/liquid(preserver fund) & Equity( Exide Life Prime Equity Fund/Exide Life Mid Cap Fund’ etc) schemes.

2)      Policy Costs/Charges:  ‘Exide Life Wealth Elite’ Scheme works good in terms of costs for those who plans to invest Rs 5 lacs annually .  There is no premium allocation charge in the first year for the customer who invest Rs 5 lacs. The charges are reasonable with Exide Life Wealth Elite compared to other life Insurance products available in the market. Interestingly, the charges look lesser than even Mutual Fund schemes available in the market. Following are the charges of Exide Life Wealth Elite:

a)      Premium Alocation Charge – 0% in the year One  &  1% from 2^nd year on words on the premium that you pay every year. (please note that this premium allocation charge from 2^nd year onwards is on the premium you pay every year & interestingly not on the total Fund value of that policy year. It makes lot of difference if any charge is imposed on total fund value).

b)      Policy Admin Charge : The maximum policy admin charge is capped at Rs 500 per month(maxium charge annually is Rs 6000). This charged will not be levied, from 6^th policy year onwards. (please note that this policy Admin charge from 2^nd year onwards is on the premium you pay every year & interestingly not on the total Fund value of that policy year. It makes lot of difference if any charge is imposed on total fund value).

c)       Mortality Charge : Depends on Customer age. But meager one. Will be known on generating Benefit Illustrations.

d)      Fund Management Charges: This is the important & expensive charge levied by the Fund Manager. The regulator in India has capped FMC at 1.35% across all the market linked markets in India. Accordingly, all most all the investment products fixed FMC of 1.35%. But, Exide Life Wealth Elite charges 1.25% FMC on all its prime Fund options like, Growth Fund, Balanced Funds. For preserver & Secure fund options, the FMC will be 1%.  The FMC rate of 1.25% makes the actual difference with other schemes available in the market who actually charges 1.35%. FMC charge of 1.25% is the most reasonable in the market.

FMC is the only charge which is charged on the total Fund value. All other above mentioned charges are charged on the premium that is paid in that respective year. When all the above mentioned total charges including FMC is averaged out, the Year on Year average charges will be arriving at 2.5%, which is almost equal to a charges of ‘Equity Oriented Mutual fund schemes. In a Mutual Fund scheme, NAV(net asset value) of a unit is arrived after deducting all the scheme related charges like FMC, Allocation charge etc. Charges in Mutual Fund scheme is tilted with NAV & arrived at unit price. The average charge deducted with MF scheme will be almost 2.5%. Interestingly, customer will not be able to view the charges levied in a Mutual Fund Scheme. In the statement he/she can be able to view only number of units allotted & final unit price arrived.

                

More importantly, with the same amount of charges, customer can choose ‘Life Cover’ upto 20 times of annualized premium in  Exide Life Wealth Elite, unlike Mutual Fund scheme( Mutual Fund Scheme gives no life cover). For instance, if a customer pays Rs 5 lac premium with ‘Exide Life wealth Elite’ he can choose minimum 10 times life cover (i.e, 50 lac life cover) & maximum 20 times (1 Cr life cover).

Also, from regulatory point of view, Exide Life Wealth Elite works in favor of investor, since ULIP guidelines made mandatory of delivering minimum Annualized Returns (IRR) of 7.5% unlike Mutual Fund schemes.

Working of the plan- Choose an Annual Regular Premium for this Policy. Choose a Policy Term which is minimum 10 years or later. Choose a Life Cover which is 10 – 20 times of the Annual Premium. Choose investment strategy in the choice of 7 funds.

In case you have any further query, please feel free to get in touch in the under mentioned number.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

              qropstoindia@gmail.com

Qualifying Recognised Overseas Pension Scheme.(QROPS): Moving Dutch Pension to a Recognised Pension Schem...

Qualifying Recognised Overseas Pension Scheme.(QROPS): Moving Dutch Pension to a Recognised Pension Schem...: India based Dutch expats who are relocating and retiring in India permanently can transfer their Dutch pensions to Recognized Pension Sche...

Moving Dutch Pension to a Recognised Pension Scheme in India

India based Dutch expats who are relocating and retiring in India permanently can transfer their Dutch pensions to Recognized Pension Scheme to avoid Dutch income tax, any capital gains tax in the Netherlands and avoid any Dutch taxes on death. You will also need to check the DTA between the country you reside in at retirement and the ROPS.

In accordance to the Pension Act, an International Value Transfer (IVT) of pension benefits accumulated in the Netherlands to a foreign country, is possible under certain conditions. You can transfer your pension accruals to various EU and non-EU pension schemes.

However, international tax-free transfers of Dutch pension benefits are only possible if approved by the tax authorities in the Netherlands.

You will need to phone both your Dutch pension company and the Dutch tax authorities, the Belastingdienst on +31 55 538 5385 to organise the “transfer out” papers and get the latest transfer value for your pension pot.Once the Dutch tax authority and your Dutch pension company allow a transfer, we can help you move your Dutch pension to India and invest it with the best investment Pension Schemes in India.

Why Transfer a Dutch Pension to a Recognised Pension Scheme in India ?

Here are some of the reasons to transfer a Dutch pension to India:

Benefits of a Dutch Pension Transfer Overseas to a ROPS in India. Benefits Only Apply if the Member is Not Tax Resident in the Netherlands

Ø  Avoids Dutch taxes like Dutch income tax,  Wealth & Estate taxes etc.,  

Ø  Receive Pension & other benefits in Indian currency.

Ø  Benefit from better appreciation opportunity presented by the Indian market.

Ø  Leave behind the unused pension funds for your beneficiary without any tax liability.

Ø  Benefits from a Growing Indian economy : In economies like Netherlands expected annual returns are in the range of 2 to 4%. Whereas India offers better earning opportunity than the Dutch market may offer. For instance, the Term-Deposit rate in India is above 8%.

Summary

The pension scheme in India presents you a unique opportunity where you can save 100% of your pension contributions made in Dutch.

The Indian economic growth provides an opportunity to improve returns on investments in comparison to Netherland/Dutch.

The 2014 budget in the Netherlands hit Dutch pensions hard. Some of the changes meant that:

Pension accruals (pension savings) will reduce for employees

 Survivor pensions payable on death would be reduced

In the event of disability, the level of insured coverage would be lower than at present

Reduced risk coverage

Can i transfer my Dutch Pension Scheme to an Indian Pension Scheme?

As of January 1, 2007, certain provisions concerning international transfers of pensions for Dutch expats moving overseas were incorporated in the Dutch Pensions Act .

Some of these provisions impose new obligations on pension funds. Thus, your current pension scheme is now obliged to co-operate in certain situations and must decide themselves whether the conditions are met to allow a transfer.

In other situations the pension administrator has the discretionary power to decide whether or not to co-operate; in these cases too, certain conditions apply.

Pension administrators have thereby acquired a personal responsibility with regard to international value transfers (IVT’s). In other words, your pension scheme has the ability to say yes or no to allow the transfer.

How to Transfer a Dutch Pension to a Recognised Pension Scheme In India ?

 How do I transfer my Dutch pension to a pension Scheme In India ?

You need to contact both the Dutch government’s tax revenue collection agency, the Belastingdienst, and you will also need to contact your current pension providers and ask them for an International Value Transfer (ITV).

Which Dutch pensions qualify to transfer overseas?

You cannot transfer Dutch state pensions (pillar 1) overseas. You can transfer second pillar and third pillar pensions though. That is those pensions where the employer and a member have contributed to a pension and private pension contributions.

Any Dutch pillar II pension can be transferred overseas if your current pension providers and Dutch tax authorities allow it.

To know in detail about the benefits or amount of pensionable service, the transfer value payment of Dutch pension pot will buy in the receiving pension scheme in India & also to know more about the options, pension schemes available in India to get your Dutch pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Netherland/Dutch. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

Transfer your Malta Pensions to a QROPS in India. A unique opportunity for India based overseas citizens who has invested their UK pensions in Malta based QROPS.

Many India based UK citizens have accumulated pensions with UK pensioners like NHS, Aviva, Standard Life etc., & finally got their UK pensions transferred to Malta based QROPS trustees like, Sovereign Group, STM Malta, The Momentum Pensions etc, . 

Malta is an English-speaking jurisdiction with excellent regulation and a flexible approach to QROPS.  As a full EU and Commonwealth member, the island has a long history of economic and financial security.

Now, India based overseas citizens, especially India based UK citizens who have transferred their UK pensions to Malta QROPS trustees can cross another milestone by re-transferring their pensions from Malta QROPS Trustees to India based QROPS schemes.

India has witnessed as the fastest growing economy in the world. India’s gross domestic product (GDP) growth rate for the January-March 2016 quarter came in at 7.9%. This rate of growth is far above that of comparable economies in any part of the world. The Philippines ranks a distant second, with China third in the GDP growth league tables for the January-March 2016quarter.

4 Reasons why you should look at QROPS!

> Receive Pensions in Indian Rupee

> Withdraw upto 30% tax free lumpsum at the time of vesting.

> Benefit from better appreciation opportunity presented by Indian Market

> Leave Behind the unused pensions/Funds for your beneficiary without any tax liability.

Tax Advantages and Flexibility

> Tax Free Commutation up to 1/3rd of your fund value*.

> Further contributions enjoy tax benefits u/sec 80 C*.

India offers you better earning opportunity than any other economy in the world.

Expected Annual Returns on your India based  pension fund under QROPS are in the range of above 9%

1 United Kingdom 1.60%*

2 United States 1.05%

3 Australia 4.20%

4 India 9.04%**

5 South Africa 5.89%

6 China 3.30%

Guaranteed Returns

• Guaranteed rate of return

• Guaranteed fund protection so that you are

. guaranteed of a peaceful retired life

Flexibility

• Save more through Top-Up Premiums.

• Decide premium payment duration with an

  option to alter it.

• Decide premium frequency

.  Decide age of retirement

Malta based Sovereign QROPS  have introduced new transfer out fees in light of these circumstances. They are as follows

Centaurus Retirement Benefit Scheme

Within one year of establishment €3,000

Within two years of establishment €2,000

Within three years of establishment, and thereafter €1,000

Centaurus Lite Scheme

Within one year of establishment € 1,500

Within two years of establishment € 1,000

Within three years of establishment, and thereafter € 500

To know in detail about the benefits or amount of pensionable service, the transfer value payment of Malta pension pot will buy in the receiving pension scheme in India & also to know more about the options, pension schemes available in India to get your UK based Malta pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in UK & the same is invested in  Malta pension scheme. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001, Karnataka, India.

Cell:     +919844519872, +919980927393

Email:  ravi.sampige@gmail.com

New UK’s Pension Schemes Act 2015- Transfers are possible only to ‘Defined Benefit’(DB) QROPS scheme . India based UK expats/NRI’s who accumulated UK pensions should know about Defined Benefit scheme.

India based UK expats forms the largest expats in the United Kingdom. Many overseas Indian citizens who have been working in UK as Doctors, Engineers, Teachers etc., have contributed to pension fund in UK & considering to get their accumulated pensions transferred to a QROPS schemes in India for availing higher growth & also for getting special tax advantages. So it is very important for them to know the changes made in UK’s new Pension Schemes Act 2015. Below are the silent features of new Pension Schemes Act 2015.

The Pension Schemes Act 2015 restricts transfers out of unfunded defined benefit public service pension schemes(like NHS pension scheme/Teachers pensions etc.,) except to other ‘Defined Benefit(DB) Schemes. This means that from 6^th April 2015 transfers are possible where the receiving scheme is a ‘Defined Benefit’(DB) scheme only. At the same time, it also does mean that transfers are not possible anymore, if the receiving scheme is a ‘Defined Contribution’(DC)scheme.

Draft regulations has come into effect on 6^th April 2015 that has restricted transfers out of unfunded defined benefit public service pension schemes(like NHS pension scheme) to Defined Contribution(DC) schemes. That means till 6^th April 2015 HMRC allowed transfers out of unfunded defined benefit public service pension schemes(like NHS pension scheme) to Defined Contribution(DC) schemes also.

The UK Government have banned transfers out of benefits held in unfunded Defined Benefit (DB schemes) public service pension schemes (like the NHS pensions scheme/Teachers pensions etc.,) to scheme offering flexible benefits. This means that a transfer will not be possible if an overseas receiving scheme provides benefits that meets the definition of ‘flexible benefits’ found at section 74 of the pension schemes act 2015. In other words, a transfer will not be possible for ‘Defined Contribution’ (DC) scheme as the DC scheme provides flexible benefits even though the scheme appears on HMRC’s QROPS list on HMRC website. Below details clarifies more on the definition of ‘flexible benefits’ ,

Section 74, Meaning of ‘Flexible Benefits’

In this part ‘flexible benefit’ in relation to a member of a pension scheme or a survivor of a member means,

Ø  A money purchase benefit,

Ø  A cash balance benefit, or

Ø  A benefit other than a money purchase benefit or cash balance benefit, calculated by reference to an amount available for the provision of benefits to or in respect of the member (whether the amount so available is calculated by reference to payments made by the member or any other person in respect of the member or any other factor)

The transfer is not possible, if the receiving scheme provides benefits on retirement or death which are calculated by reference to an amount available for the provision of these benefits (the member’s ‘Pot’ or ‘fund’), whether this ‘pot’ or ‘fund’ is calculated from payments made by the member or any other factor (for example, payments by employers, transfers into the scheme or member payments) ? Usually the member’s pot is invested. Sometimes there might be a  guaranteed rate of investment return.

Because in the UK, these types of benefits are known as ‘money purchase’, ‘cash balance’ or ‘Defined Contribution’ benefits.

NHS made it clear that a letter from HMRC(HM Revenue & Customs) to the receiving scheme with a QROPS number is not sufficient that the scheme is or will remain a QROPS. Similarly, appearance on the published list of QROPS schemes on HMRC website is also not guarantee that the listed scheme on HMRC’s site is or will remain a QROPS(Qualifying Recognised Overseas Pension Scheme).

As stated in the very beginning, the Pension Schemes Act 2015 restricts transfers out of unfunded defined benefit public service pension schemes(like NHS pension scheme/Teachers pensions etc.,) except to other ‘Defined Benefit(DB) Schemes. This means that from 6^th April 2015 transfers are possible where the receiving scheme is a ‘Defined Benefit’(DB) scheme only.

 If the receiving scheme is not ‘Defined Benefit’ scheme(DB), then a transfer is not possible at all to an overseas QROPS scheme even though the scheme appears on HMRC’s QROPS list on HMRC website. For one’s kind information, most of the QROPS scheme’s appeared on HMRC’s QROPS’s list, especially India based QROPS schemes  are ‘Defined Contribution’(DC) Schemes & not Defined Benefit(DB) schemes.

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

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd.

Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.
Cell:     +91 9844519872, +91 9980927393
Email:  ravi.sampige@gmail.com

Requirements of the HMRC legislation/Conditions for QROPS in India- India based UK expats/NRI’s who has accumulated UK pensions & looking for QROPS in India that meets all the conditions of HMRC to avoid UK tax of 55%.

India based UK expats forms the largest expats in the United Kingdom. Many overseas Indian citizens who have been working in UK as Doctors, Engineers, Teachers etc., have contributed to pension fund in UK & considering to get their accumulated pensions transferred to a QROPS schemes in India for availing higher growth & also for getting special tax advantages.

There are about twelve India based QROPS schemes listed on HMRC’s QROPS list. But, before going into the scheme details, It is good to know the HMRC’s regulations over QROPS . One should be aware that, HMRC do not approve & Guarantee any pension scheme listed on HMRC site as QROPS. Following is the disclaimer clause of HMRC as for as QROPS schemes that are on HMRC site:

“Publication on the list should not be seen as confirmation by HMRC that it has verified all of the information supplied by the scheme in its notification. The purpose of this list is merely to help UK registered. pension schemes carry out their due diligence when transferring pension savings to another pension scheme that is not a registered pension scheme. The list is not to be taken as a recommendation for a particular scheme or product. Nor should it be taken that any scheme featured on the list is approved or backed by HMRC. Completeness of this list”

UK pensioners  including NHS do accepts that  overseas pension schemes (for example, Pension schemes in India) may be open to customers with different retirement needs, so that pension scheme in india cannot be the same as UK pension scheme in terms of policy features. However, UK pensioners would also expect the overseas pension scheme rules(for example, Indian Pension scheme rules)  to have a clause stating that the normal pension age for a member who has UK transferred funds cannot be before age 55 and they also expect to see the HMRC reporting requirements detailed.

All UK Pensioners including NHS understands the requirements of the HMRC legislation including that in the Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015 are that the receiving scheme is broadly similar to a UK registered pension scheme. The overseas pension scheme (OPS) must be a recognised overseas pension scheme (ROPS) and on the HMRC list of ROPS.

ROPS - As you will know, to be a ROPS a scheme must meet all the following conditions:

· it is an OPS; and

· it satisfies the ‘benefits tax relief test’; and

· it satisfies the ‘pension age test’; and

· satisfy at least one of the two tests

  Test 1: is a test of location/scheme type. At least one of the following points must be satisfied:

· the scheme must be established in a Member State of the European Union, Norway Liechtenstein or          Iceland, or

· the scheme must be established in a country or territory, other than New Zealand, with which the UK has a    Double Taxation Agreement that contains exchange of information and non-discrimination provisions, or

· the scheme must satisfy the requirement that, at the time of the recognised transfer in, the transfer is made     to a pension scheme which is a ‘KiwiSaver’ scheme as defined in section 4(1) (interpretation) of the      KiwiSaver Act 2006 of New Zealand.

  Test 2: requires that at the time of the recognised transfer into the OPS, all four of the following sub-requirements are met:

· the rules of the scheme are such that at least 70% of the funds transferred in will be designated by the    scheme manager for the purpose of providing the member with an income for life;

· the rules of the scheme are such that the pension benefits (and any associated lump sum) payable to the    member under the scheme, to the extent that they relate to the transfer, are payable no earlier than normal  minimum pension age (usually age 55) or earlier ill-health;

· the rules of the scheme are such that membership of the scheme is open to persons resident in the country    or territory in which it is established; and

· if the scheme is established in Guernsey and is an exempt pension contract or an exempt pension trust  under s157E of the Income Tax (Guernsey) Law 1975, then the scheme must not be open to non-residents  of Guernsey.

In order for NHS Pensions to transfer pension benefits the ROPS must be a qualifying recognised overseas pension scheme (QROPS) as defined by HMRC’s legislation.

In order for a ROPS to be a QROPS, certain final steps must be taken and further conditions met:

The scheme manager is the person (or the persons) administering or responsible for the management of the ROPS.

The Scheme Manager of the ROPS must notify HMRC that the scheme is a ROPS providing the following information:

1.       the name and address of the scheme and the date it was set up;

2.       the name of the country or territory the scheme is established in;

3.       name, address, contact details and legal status of the scheme manager;

4.       confirmation of whether or not the scheme is regulated in the country in which the scheme is established. If the scheme is regulated the name and address of the regulator and any reference number allocated by that regulator;

5.       the name and address of the tax authority for the scheme in the country or territory in which the scheme is established. This is not required if the scheme is set up by an international organisation; and

6.       confirmation of how the scheme meets the requirements of being an OPS and a ROPS

7.       provide such evidence as HMRC may require to show that the scheme is indeed a ROPS (which may include supplying a copy of the scheme rules); and

8.       undertake to:

                     · inform HMRC if the scheme ever ceases to be a ROPS; and

               · comply with any prescribed information requirements that fall on the scheme manager; and

               · ensure that their pension scheme continues to meet the requirements to be a QROPS.

The respective client  is required to make their own due diligence to ensure all the relevant conditions have been met by the selected QROPS scheme in India to get his/her UK pensions transferred in order to protect both the UK Pensioner (who is a transferring scheme)  and the member from potential tax charges due to the transfer made to a QROPS in India.

HMRC legislation refers to the requirements expected of the receiving scheme, therefore the members age at the time of the transfer, or the terms of their individual policy agreement with the scheme is not what would determine whether the scheme satisfies HMRC conditions.

The Overseas (Miscellaneous Amendment) Regulations 2015  2 and 3 amend the overseas pension scheme regulations by adding a condition which must be met by a scheme before it becomes a recognised overseas pension scheme. Benefits must be payable to the member no earlier than if pension rule 1 in section 165 applied i.e. no earlier than the age of 55.

One should note that many India based QROPS schemes which appear on HMRC’s QROPS list on HMRC’s official website,  does not appear to satisfy the requirement to be a ROPS because many India based QROPS schemes on the list does not satisfy the ‘pension age test’ in the Overseas (Miscellaneous Amendments Regulations) as many India based QROPS schemes do got following policy features, which is actually not in terms of HMRC’s Pension age rules:

           ·Many India based QROPS allows clients to choose a vesting age between age 45 and 75

           · Many India based QROPS got no clause in main the scheme rules stating that the vesting of UK      transferred funds is not possible before age 55.

In view of above reasons, it would appear that many India based QROPS schemes do not meet the conditions be a QROPS. If an India based UK expat/NRI who has accumulated pensions in United Kingdom & considering to get is UK pensions transferred to a QROPS scheme in India, he/she should make his/her own special due diligence before selecting QROPS in India to get his/her UK pensions transferred in order to save his accumulated pensions from potential UK’s tax of 55%. Other wise, his/her transferred UK pensions will get taxed at the rate of 55% from HMRC-UK.

So it is the duty of the member (who has accumulated UK pensions) to verify whether the scheme is meeting the revised Conditions of HMRC or not. One of the prime conditions of HMRC is that, QROPS should not allow any benefits before age 55. Else the transferred Corpus will attract the UK tax of 55% + Penalty that can go upto 82%. 

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

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd.

Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.
Cell:     +91 9844519872, +91 9980927393
Email:  ravi.sampige@gmail.com