Hi all

I am 37 years old and have 8 years worth of UK NHS pension contributions. The NHS pension is a defined salary benefits pension based upon my final UK salary (from when I left the NHS in 2005) and it is index linked. I moved to Australia permanently in Jan 2008.

I am not sure whether I should transfer my UK NHS pension to an approved Australian superfund. I know I have missed the 6 month tax free grace period on being able to bring my UK super to Oz and that if I transfer the NHS pension over, then I will need to pay 15% tax on the capital growth since Jan 2008 when I arrived in Oz.

My difficulties are

1. I have seen a financial adviser (which cost >$2000 (for a complete financial plan, not just pension advice) but I did not have confidence in his advice because he is Australian and knows nothing about the NHS pension scheme. I don’t know where to get good advice about this specific NHS/defined benefits issue and google has not been helpful on this matter.

2. If I leave the money in the UK, I am not sure if the advantages and security of the defined benefits outweigh the Australian income tax I would have to pay when I receive the pension annuities after retirement

3. I will definitely be in Australia for the next 8 years and probably forever after that, but I am not 100% sure that I will not return to the UK to live in the distant future.

4. If i do not transfer my pension, will I have to pay tax each year on the capital gain or only when/if i do transfer it ?

There must be many others in the same boat but I've not come across a clear answer on any of the discussion board
Can anyone please advise?

Thanks in advance

Hi

Your Financial Advisor should have explained to you in his Statement of Advice the implications of not bringing your Pension over, including is it exempt from the Foreign Investment Fund or not.

As yours is an Employer Pension then it will be exempt and you will not have to declare the growth each year. Bear in mind if you do end up transferring it in a number of years time you will have the growth taxed on all those years.

$2,000 is a lot to have been charged for your Financial Plan especially as details like these were not given.

Stacey