Proposed UK Legislation Affects Uk Pension Transfers for teachers, doctors, nurses, police, armed forces, firefighters and public servants
In March 2014, the UK Governments announced its intention to cease the transfer of pensions for members of Public Sector Schemes.
On 6 August, they clarified this and confirmed that transfers would be banned from the following schemes;
- Armed Forces
- Civil Service
There has been no timeline published regarding any potential bans before April 6th 2015, however it is likely to be implemented prior to this date.
Accordingly, there is a limited window of opportunity for members of those schemes whom have sought advice and wish to transfer their funds out of these Public Sector Schemes.
The bans on transfers will effect members who migrate to another country to retire, as they will not be able to transfer their funds, and their retirement income stream will be permanently subject to exchange rate fluctuations. Additionally, there may be negative tax consequences for receiving UK retirement income, compared to drawing income from an overseas scheme.