UK overseas pension transfer advice specialists, Global QROPS Ltd, advise people moving abroad, on UK pension transfers to QROPS (Qualifying Recognized Overseas Pension Schemes). Many of these clients would have accrued UK State Pension rights too and the ruling that the European Court of Human Rights (ECHR) is deliberating – final decision expected by April 2010 – could affect many UK migrants retirement income.
For those migrants who have moved permanently to a European Economic Area (EEA) country (including Switzerland and Gibraltar) or to a country with a reciprocal social security agreement with the UK (such as the USA), their UK State pension will include indexation in payment.
For those migrants that have moved to a non-EEA country or to a country without a reciprocal social security agreement with the UK, each UK State Pension payment that they will receive will not be indexed.
Global QROPS Ltd’s clients that are permanently moving to Canada, Australia, New Zealand and South Africa are amongst those that feel that that the situation is unfair with the value of their UK State Pension not keeping pace with those moving to other parts of the world – despite many of these individuals making the same national insurance contributions (NICs) during their working life in the UK.
An appeal has been made to the ECHR and, as previously mentioned, the result of appeal is expected to be known by April 2010. In the meantime, Global QROPS Ltd will keep clients informed.
