UK pension transfers

In April 2015, Her Majesty's Revenue and Customs ('HMRC') changed the rules around UK pension transfers through Qualifying Recognised Overseas Pension Scheme (QROPS) provisions. 

This means that that all QROPS schemes must ensure that funds transferred from overseas pensions are locked in until at least 55, unless there was a requirement for early withdrawal due to serious illness.

KiwiSaver rules currently allow withdrawals in other situations, for example, to help with buying a first home and significant financial hardship. This means that KiwiSaver schemes do not meet the criteria for QROPS.

The Summer KiwiSaver Scheme therefore cannot accept a transfer of monies from a UK pension scheme.  

If you have transferred money to a KiwiSaver scheme through QROPS provisions in the past, a withdrawal or transfer to another KiwiSaver scheme may trigger penalties of up to 55% of the value of the withdrawal or transfer amount. You should seek specialist  taxation advice before taking any action on your KiwiSaver account.