Couple with NHS Pensions transfer to a SMSF with QROPS
John and Anne were working professionals who had decided to move to Australia and had contacted our UK advisers Global QROPS. Both had many years of service within the NHS. Global QROPS were engaged to obtain pension valuations and prepare a Pension Transfer Analysis (PTA). This PTA outlined their options with their respective NHS Pensions that were valued at GBP 185,000 and GBP 79,000 respectively. After receiving the pension valuations and assessing their objectives, it was recommended by their UK adviser that they transfer their pensions to Australian Super Funds via a UK SIPP. The SIPP allowed them to take advantage of the Foreign Exchange facility, which saved them up to a 5% fee on any FX conversion that would be otherwise payable on a direct pension transfer to super (which is converted at standard bank rates). The UK advisers managed all the transfer paperwork to the SIPP and set an AUD:GBP rate.
Once they arrived in Australia, they met with the recommended Australian Adviser who completed an initial fact find and established their goals, risk profile and understood their current situation. Noting the recommended transfer strategy within the Pension Transfer Analysis from the UK adviser, and the clients primary objective of transferring their pensions to Australia, the Australian Adviser produced a report or Statement of Advice (SOA) outlining the recommendations for John and Anne. After reading this report both John and Anne agreed with the recommendation to establish an Australian retail super fund each with QROPS designations. All associated transfer paperwork was jointly managed by UK and Australian advisers within bdhSterling and as the desired FX rate had been achieved, the funds were converted to AUD (at a fraction of the standard bank rate) and transferred to the cash account in the retail super funds. John and Anne had discussed the option of a SMSF with their Australian Adviser while the transfer was under way and after receiving a Statement of Advice outlining the SMSF recommendations, they agreed that a SMSF was their preferred superannuation vehicle. They engaged bdhSterling to establish the SMS, with the assistance of a recommended accountant, and bdhSterling managed the QROPS application for the SMSF. Once approved by HMRC, the funds were transferred to the SMSF cash account from both of their retail super funds and directed to a range of listed assets (with the assistance of a private bank broker), cash and term deposits as per their risk profile. They also directed their employer contributions to their SMSF and had some of their personal insurances (life and TPD) paid by their fund. John and Anne engaged our internal accountants to do their individual tax returns and ongoing SMSF compliance work. They have subsequently bought a house and used a recommended mortgage broker (who had experience with new migrants) to assess all the mortgage providers (including the big four banks) and apply for a loan with the best mortgage rate and structure available to them.