# Teacher Pension Transfer



## sjleroux (Sep 20, 2011)

Hi there,

I've moved to Australia from the UK 5 months ago. I am a secondary school teacher and was very fortunate to obtain a permanent residency work permit when moving over here!

I am however very unclear about one thing, and was hoping that someone could help me??!! What do I do regarding my Teacher Pension Fund in the UK? Is it the best to leave it over there, or should I transfer it to Australian Super? I was in the process of doing this, but just found out that the agents appointed to do this for me, is charging 25% of the funds that would be transferred! Therefore I would only get a maximum of 75% of my funds?

Can anyone please give me some advise of which is the best way forward....Do I leave it in the UK and would I be able to obtain it when I retire, or do I transfer?

Many thanks


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## anj1976 (Apr 24, 2008)

i'd say leave it there if you dont need the money and do it when you go for a holiday, not sure if you are charged any interest there. i have money lying in India and i have kept it there on purpose, to use it when we go there or if i have to pay someone i can simply transfer the money to their account online


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## sjleroux (Sep 20, 2011)

Thanks for that.....only concern I've got is that I can't access the money as it's my pension fund, and I'm not sure whether, with all the nonsense going on in the UK with the economy, whether my pension will be paid out when needed?


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## comingtoaustralia (Feb 19, 2011)

It probably depends on how much you have in there, and what pay point you were on when you left etc etc.

I've only got about £2k in my TP, and now come out of it due to all the changes and the extra £60ish in my paypacket atm is going to be worth more than the extra few hundred in the pension pot imho. I think I worked out I'll get about £10 a year or something lol So I'll probably bring it over (if they will even transfer that little!)

TP seems as safe as anything I guess in finance (in that, you never do know) so imho I don't think the issue is whether the payout will still be there, just whether they will have erroded it more than they already are and what that might mean x years down the line - how far you are off pensionable age might also have a bearing on this - the changes in April might not be the last by a long shot imho, they seem to be riding rough shod where-ever and however they want to with regards to teachers (how long the burgandy book will be in effect with all the academies taking over is anyone's guess for eg).

You have the weigh up the pros and cons of each option I think - what are you due to get from TP vs what return would that give in an Aussie super and would the difference be worth the 25% charge? Have you checked with a few different companies to see what their prices are?

Can't be much more help than that - pensions aren't really my strong point, and supers even less!


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## naoto (Jan 8, 2012)

A lot of banks do the transfer hassle free. You can even choose to put it into super or otherwise. 
Talk with westpac or Combank branch manager. They will explain it for you. 
As far as I know their fees are around £150


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## jorgon (Dec 19, 2011)

There is insufficient information in the original question to give any sensible advice, since it depends on the amount involved, the type of pension, the age of sjleroux and whether sjleroux might return to the UK.

Generally however, a UK pension pot ought to be transferred into a QROPS (Qualified Recognised Overseas Pension Scheme) to avoid high UK tax penalties. Many Australian superannuation funds are QROPS (or you can start your own!) so this is not normally a problem. If a transfer is made after 6 months from the date when the transferor became a permanent resident then Australian tax is payable on any _increase_ in its value (in Australian dollar terms) since that date. This might affect the timing of the decision to implement the transfer.

The transferor fund and the transferee (QROPS) fund with have appropriate forms to complete to achieve the transfer. You will need to inform the Australian Tax Office (ATO) of the transfer to cover any tax consequences, and you will need to decide whether to pay any such tax personally or whether it should be paid by the transferee fund (from your pension money). Since this is tax only on the _increase_ in value, it should not be an onerous amount. And if you are earning it is best that the transferee fund pays it because the applicable tax rate will be lower. 

*Do not pay anyone to fill out these forms for you, to liaise with the ATO, or to advise you about the decision who should pay the tax* unless you cannot deal with forms and are otherwise incapable.


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## JANEYB (Aug 15, 2013)

*qualifications*

Hi there,

I am a teacher looking to move to Sydney, can anyone help me ascertain whether my qualifications match the required to work in schools and nurseries in Australia.

My UK qualifications are; a Foundation Degree in Early Childhood Education and a Montessori Diploma. 

I have applied to have my qualifications assessed but this takes 3 months. I need to start making decisions about whether I can make the move.

Thanks!!


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