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Have you ever lived and worked in the UK?
You now have the opportunity to transfer your UK pension benefits to a Mercer Super Trust account in Australia.
Changes to UK tax laws mean that UK pension benefits transferred to an overseas fund will be subject to UK tax of at least 40% unless the benefit is transferred to a "qualifying recognised overseas pension scheme" (QROPS).
The good news is that the Mercer Super Trust has been granted QROPS status by the UK authorities. This means that you can transfer your UK pension benefits to the Mercer Super Trust.
You'll need to join the Mercer Super Trust's Personal Superannuation Division
Your UK pension benefit can only be transferred to the Personal Superannuation Division of the Mercer Super Trust, so you will need to become a member of this Division (if you are not already a member).
It is not possible to transfer your UK pension benefit to your employer’s plan (if any) in the Corporate Superannuation Division of the Mercer Super Trust.
The Personal Superannuation Division offers many of the same features as your employer's plan, including access to the same investment options and member services. For more detail, including information on the applicable fees, you should read the Product Disclosure Statement for the Personal Superannuation Division.
You may have to pay UK tax on payments
If payments are made while you are a UK resident (or have been in any of the previous 5 UK tax years) a UK tax charge of up to 55% of the payment may be levied. This UK tax will apply to any payment that would have been 'unauthorised' if it had been made from a UK scheme. For more information, please refer to our fact sheet on UK pension transfers.
You may have to pay Australian tax on your transfer
Some Australian tax may be payable on the amount transferred from the UK. The tax payable depends on whether you transfer your UK pension benefit more than 6 months after becoming an Australian resident (this isn't new).
Under new rules introduced on 1 July 2007, Australian tax may also be payable depending on the amount of the transfer, even if this occurs within 6 months of becoming an Australian resident. It is not possible for any Australian super fund (including the Mercer Super Trust) to accept a transfer of more than $450,000 (or more than $150,000 if you are aged 65 or over).
Not sure how to find your UK pension scheme?
If you think you may have a UK pension benefit but you're not sure how to locate it, the UK Government offers a pension tracing service, which you can access at thepensionservice.gov.uk.
What if your pension benefit is in another country?
The Mercer Super Trust is able to accept pension transfers from other countries. However, you will need to check what rules (if any) the relevant authorities in that country apply to such transfers.
Some countries have requirements which prohibit such transfers or impose signficant tax penalties.
How Mercer can help
The rules regarding the transfer of super benefits from the UK are complex and various taxes may apply.
Our Helpline consultants and financial advisers are available to answer your questions.
Please call 1800 682 525 to speak with a Helpline consultant or Mercer financial adviser about transferring your pension benefit from a UK scheme to the Mercer Super Trust.
Action
- Download our fact sheet to learn more about transferring your UK pension
- Call 1800 682 525 to speak with a Mercer financial adviser
- Start the transfer process using the Mercer Super Trust transfer form
The trustee of the Mercer Super Trust recommends that, before making a decision to transfer, advice should be sought from a licensed or appropriately authorised financial adviser.
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