Select enhancements

QROPS now available – Perpetual’s Select Superannuation Fund can accept UK pension benefit transfers

On 1 May 2007, Perpetual’s Select Superannuation Plan and the Perpetual’s Select Pension Plan became Qualifying Recognised Overseas Pension Schemes (QROPS) and can now accept UK pension benefit transfers without the UK tax of 40% applying.

This is good news for individuals who have UK pension benefits they wish to transfer to Australia as not all Australian funds are registered as a QROPS.

It may be beneficial to transfer UK pension benefits prior to 30 June 2007 because any transfers made up to 30 June 2007 count toward the one-off $1 million transitional limit (which is available to everyone aged under 75 years¹). You should note however that in our experience transfers from UK pension schemes may take up to eight weeks.

After 1 July 2007, UK pension transfers count toward the after tax (or ‘non-concessional’) contribution caps¹. If you are less than 65 years, from 1 July 2007, the after-tax contribution cap will be a maximum of $150,000 per annum or a maximum of $450,000 every three years, both as either single or multiple contributions. If you are aged between 65 and 74 years¹, you will only be able to contribute a maximum of $150,000 per annum. It is important to note that we are required to reject any single contribution amounts over these caps after 1 July 2007.

We strongly recommend that you seek advice from a qualified financial adviser prior to transferring UK Pension monies to Select.  Read more about QROPS.

^1. If you are aged between 65 and 74 years, you must satisfy the work test to contribute. The work test requires you to have been employed for at least 40 hours over a period of not more than 30 consecutive days during the same financial year as you make the contribution.  Note that any ‘growth’ component you have nominated is not included in the contribution caps (refer QROPS brochure for further information).