The capital value of most UK "personal" or “employment-based” pension schemes (but not SERPS, S2P or the basic State Pension) can be transferred to an “approved” scheme in New Zealand. This is not dependent on being resident in New Zealand. The only requirement is that under the UK transfer rules, superannuation schemes outside the UK must have QROPS (Qualifying Recognised Overseas Pension Scheme) status to be able to receive a tax-exempt transfer value.

SuperLife currently has QROPS status for its KiwiSaver scheme which is a qualifying scheme under the UK’s pension transfer regulations. This means we can transfer your UK pension direct to SuperLife's KiwiSaver scheme. 

Residency

The 2006 UK pension reforms resulted in a relaxation of the residency requirements relating to pension transfers. The 2006 regulations provide that you no longer have to be resident in the same country as the receiving scheme is based.

SuperLife can transfer your pension into our HMRC approved QROPS if:

• you are a New Zealand resident currently living in New Zealand after working in the UK; or
• you are a UK resident intending to move to New Zealand; or
• you have worked in the UK but do not live there anymore (e.g. you are now living in Canada or Spain)

Withdrawing a QROPS balance

On transfer of your UK pension to a QROPS scheme, your funds remain for an “initial period” subject to the pension payment rules under the UK Finance Act 2004. This applies until the later of five years after 6 April, after you last ceased to be a tax resident in the UK, and the date 10 years from the date of transfer. Once you are past this initial period your funds become subject to the QROPS payment rules.

For members who are past the initial period, SuperLife imposes no restrictions other than the standard UK restrictions. Within these rules members can choose when they will receive a benefit.

For members who are still in the initial period, the pension rules as defined in the FA will apply:

• The payment must be reported by SuperLife Limited to HMRC (Her Majesty's Revenue & Customs)
• No payment can be made until the member is over age 55
• A maximum of 25% of the transferred funds can be paid as a lump sum, with any further payments during the initial period being paid as a pension.

Payments falling outside these criteria may be classified as “unauthorised” by HMRC, and could give rise to a tax charge of up to 55% of the payment.  SuperLife will not make unauthorised payments. 

SuperLife does not charge a withdrawal fee, and there is no tax liability in respect of a withdrawal if paid in New Zealand; members simply meet any bank transfer costs and other agreed costs.  If payment is made to a country other than New Zealand, the member will need to ascertain whether there is any tax liability in that country in respect of the payment.