UK Gov’t to plug QROPS public sector loophole
The UK Government is currently looking to close a loophole that allows expats to transfer their unfunded public sector pensions into qualifying recognised overseas pension schemes (QROPS). Transfers from unfunded public sector pensions – including pensions for teachers, the civil service, the armed forces, and the police and fire services – were banned from being transferred into QROPS and other defined contribution schemes when the pension freedoms came into force in April. However, the government has admitted there is a loophole in the system where overseas transfers are allowed if pension schemes are administered in the European Economic Area (EEA). Please link to International Adviser to read the full article by Katherine Denham.