Rolling over into Australian superannuation - contracted out S2P

[wilber505]

Hello,

I have read much information on "contracting out" of the S2P into one's own individual fund.

I am however trying to find out however whether the contacted out amount (which I beleive is referred to as 'Protected Rights' fund or S2P fund) is able to be rolled over into an international (specifically - Australian superannuation) fund. Or are contacted out amounts restricted from being rolled out of the UK?

would appreciate the advice

many thanks

J

[mkp]

Hi Wilber505,

Yes you can transfer your "protected rights" fund into an Australian Super Fund. You should note that the rules to transfer from a UK pension to any overseas scheme are changing from 6/4/06. Also, their are Australian tax implications on transfer - some positive and some negative, depending on your situation.

Hope this helps.

mkp

[Gazzer]

Hi mkp

How do you do that, my SIPP manager said I couldn't? Do you have a reference page from somewhere I can refer him to?
Thanks.

[mkp]

Hi Gazzer,

Here is the current HMRC form required when such a transfer occurs. The form itself is proof that such a transfer is possible.

http://www.hmrc.gov.uk/nic/forms/ca1881.pdf

Does your SIPP contain protected rights? I didn't think SIPPs can do this. Your SIPP manager may have said that your can't contract out of S2P which is true - you would need an appropriate personal pension to contract out. If you are thinking of contracting out for the current tax year, you only have a few weeks to do so.

As previously mentioned, the rules to transfer abroad change on 6/4/06. The link below refers to the section in HMRC's Registered Pension Schemes Manual that deals with the transfer of UK pension benefits abroad, if that is of any interest.

http://www.hmrc.gov.uk/manuals/rpsmmanu ... 101020.htm

Rgds

mkp

[Gazzer]

Dear MKP

Thanks for the information. My SIPP was in two parts, the "protected rights" and "non-protected rights". When I emigrated to Australia over a year ago I transferred the non-protected rights but the SIPP manager wouldn't transfer the protected rights. We are only talking about a small amount of £3,500 and these funds are on deposit in the SIPP. This form would suggest it can be transferred. I will be on the phone to him first thing this evening.
Best Regards
Gazzer

[mkp]

Hi Gazzer,
I am interested to know how you get on with the potential transfer of your protected rights. Are you able to request the transfer before 5th April?
Rgds
MKP

[Gazzer]

Dear MKP

I have sent them the form and they said they would process it so hopefully it will go ahead without any problems.

Best Regards

Gazzer

[Gazzer]

I will feel safer with my pension pot over here as the way pensions seem to be going in the UK, with shortfalls and private sector workers losing their pensions due to the changes in pensions legislation, I can see the government dipping into private pension funds to make up the difference.

[mkp]

Hi Gazzer,

Great to hear your progress. And you also should gain the benefit of the AUD being at it's weakest against GBP for about 12 months.

Rgds

MKP

[Gazzer]

Hi MKP
If I get the funds here I'll owe you a beer as I would not have persued the matter if it had not been for your reply to Wilber505!