I have worked abroad, what about my Pension?
Rules For Overseas Pension Transfers.
Returning emigrants should be aware of the rules that exist in relation to pension transfers
These rules differ significantly from country to country and may be influenced by
1. The type, nature and scale of the pension savings in place,
2. The tax treatment afforded to the pension savings when they were being built up,
3. The residency status of the pension holder (e.g. citizen/resident/work permit holder)
4. Whether the pension holder has dependent or spousal commitments.
How to transfer your pension from Overseas
• contact the administrator of you pension savings and get the transfer documents and contact us.
Pension Requirements Regarding Transfers of Pensions in to Ireland
The Irish Revenue will allow pensions from overseas to be transferred to an approved Pension Vehicle once :
a) the transfer takes place before pension benefits under the overseas scheme come into payment.
b) the scheme member requests the transfer.
c) the rules of both the Irish and overseas scheme permit the transfer.
d) the trustees or administrator of the transferring scheme comply fully with any transfer rules.
e) the Revenue authority in the State from which the transfer is made approves the transfer.
What should I consider before transferring a pension to Ireland from another country?
• Seek Advice from a Qualified Financial Adviser
• Is there a tax implication?
• Is there any financial implication for the overseas pension transfer?
• How benefits are paid from their existing scheme compared to an Irish scheme.
• The age at which benefits can be accessed
• The amount (if any) of the benefits that can be taken as a lump sum from the existing scheme as compared to the Irish scheme
• Projected values and costs under the existing scheme compared with projected values and costs under the Irish scheme.
• The taxation of benefits under the existing scheme compared with taxation of benefits under the Irish scheme.
• The investment fund choices that are available under the Irish pension scheme compared to those already invested in the existing scheme.
Accessing benefits before age 55 may result in a liability to UK tax charges. A person who is born outside the UK having built up pension savings in an approved UK pension scheme can move their pension offshore if they want to retire outside the UK. For those wishing to transfer a private pension from a registered UK scheme, the UK allows transfers to overseas schemes with ‘QROPS’ status (Qualifying Recognised Overseas Pension Scheme). Requests for transfers may be assessed for tax purposes by the scheme administrator and by the UK’s tax authorities. If the scheme to which you are considering transferring your pension savings is not a QROPS, your UK pension scheme may refuse to make the transfer, or you may have to pay at least 40% tax on the transfer.
Always seek consultation from a Qualified Financial Adviser.
Irish emigrants who have worked in Australia as ‘temporary residents’ having entered Australia on a temporary visa and paid in to the Australian ‘Superannuation’(pension) system can apply for a ‘departing super payment’ (DASP). You must have held a temporary visa under the Migration Act 1958 (except visas under subclasses 405 and 410) to be eligible to apply for the DASP. Application conditions and further information can be found through the links below. Australia’s DASP payments are made to the individuals to whom the application relates and do not require that the payment be transferred to an Irish pension scheme. Australian withholding tax will apply to departing superannuation payments.
For more information about the departing Australia superannuation payment you should first contact your superfund administration.
Canada’s federal pension legislation does not specify the manner in which the funds are to be paid, but only that they are not subject to its ‘locking-in provision’. Notwithstanding this, there may be tax implications which should be addressed to the CRA.
Individuals will require a written determination from the CRA that states they are a non-resident of Canada for the purposes of the Canadian Income Tax Act and, if applicable, written consent from a spouse or a certification that you do not have a spouse.