BENEFITS OF QROPS

(Qualifying Recognised Overseas Pension Scheme)

The special tax and flexibility benefits, listed below, can by enjoyed by those who have completed, or intend to complete, five full consecutive tax years as non UK resident.

All or some or the following benefits may apply to you.

Retirement Age

QROPS is a retirement scheme and is designed to provide for retirement with defined retirement / termination events as follows:

• Normal retirement age of 65
• Early retirement age from 55
• Early retirement age before 55 for those in special occupations (e.g. professional footballers)
• Death or permanent disability
• There may also be greater flexibility determined
  by an individual's circumstances, which will be
  considered on a case by case basis.

Income

• There is no Guernsey tax payable on annuity or drawdown income (unless the plan is for a Guernsey taxpayer) however, it is recommended that you take advice before commencing income drawdown
• There is no requirement to ever purchase an annuity.
• As considered out with the EU, this will remain unaffected by the Gender Directive ruling from the European Court of Justice.

Funding the QROPS

• QROPS can accept transfers from all UK pension schemes including transfers from all Employee Sponsored (Final Salary or Group Money Purchase) or Personal Pension Schemes.
• QROPS can accept Protected Rights and Guaranteed Minimum Pension (GMP) funds
• QROPS can accept transfers from other international schemes.
• Additional lump sums can, subject to UK funding restrictions, be paid into a SIPP then transferred into QROPS

Gross Roll Up

• QROPS is not subject to tax in Guernsey (gross roll up of funds), is outside the EU and therefore not subject to the new European Savings Tax Directive

Lifetime & Annual Allowances

• Transferring to any pension is a 'Qualifying Event', so if your funds are currently above the Lifetime Allowance (£1.8M 2011/12, £1.5M from 6th April 2012) and have not applied for and received protection, then a tax charge may be applied - you should seek advice from your financial adviser.
• If you have Primary or Enhanced or Fixed Protection please advise us before you transfer and we can look to maintain this protection.
• In some circumstances growth of the plan will not give rise to a lifetime allowance charge even where it would have done if the funds had stayed in the UK, your financial adviser will advise you if this is relevant to you.

Nationality

• The plan is open to all nationalities, provided you have UK pension funds.

Transparent Charges

• QROPS has low charges
• QROPS has no exit penalties

Member risks and responsibilities

• The growth of your fund will depend on the performance of your chosen investments.
• Information on past performance of an investment should not be taken as a guide to future performance.
• The value of your investments is not guaranteed and could go down as well as up.
• The wide range of investment markets that you can select will have different risks attached to them. If you are in any doubt you should seek professional advice.
• Some investments may not be readily realisable and you may not be able to realise the investment when you choose to.
• The value of any property investment may be based on a valuer's estimate rather than a market price.
• As well as investment growth, your plan benefits will depend on the amount paid into the scheme along with charges.
• Trustee administration charges or those levied by your financial adviser may increase in the future.
• HMRC and Guernsey tax rules may change in the future to your disadvantage.
• You should conduct a regular review of your QROPS.
• You should regard your QROPS as a long term investment.
• The relevant member payment charges do not apply unless the member:
• Please advise QROP Direct of any relevant change in your circumstances, especially if this involves your declared residency status.

Charges

• Detailed information on charges is given in our Fee Schedule.
• The Trustees' administration fees cover the provision of specified services to include administration of the fund, annual accounts and Trustee responsibility, it is charged annually in advance.
• Additional fees may apply for specialised investment assets or where assets are held within an offshore company (e.g. property and private equity). Fees will be quoted on a case by case basis before the work is undertaken.
• Any additional professional work requested by the member will be quoted in advance. These fees will be calculated by the time, complexity, urgency and responsibility involved. We generally avoid any fees other than our standard fees and where additional fees have to be charged we do our utmost to keep these to a minimum.
• Should you transfer the plan to another administrator, no termination fee will be applied.