Pensions and opting out

**Gonzo** · 16 November 2006, 19:03

Originally posted by Mailman

Right, I want to opt out of my works pension scheme and then send the funds that are in my pension fund back to NZ.

Firstly, is that possible and secondly, how does one go about getting things moved?

The real reason I ask is because I want to send the money to a pension fund in NZ that has a "surrender value" so I can cash it up and live the highlife again!

Mailman

I believe that it could be possible but it is fraught with difficulty. You could start having a look here http://www.ukpensionstonz.com/.

I have had a brief look at it in the past and I think that you will not be able to simply cash it in when in NZ like you would do with an NZ scheme, because there are additional rules (which is the only reason the UK government will allow the transfer in the first place).

Let me know how you get on - Mrs Gonzo is from NZ which basically means that I have to go and live there in a couple of years time and we have been eyeing up the balances in our pension schemes thinking "we could buy a house with that".

In the meantime, make sure that you are contracted out of the State Second Pension here (you may already be depending on how your employer operates the scheme). Payments from overseas government pensions will be deducted from your Super when you eventually get it (under current NZ rules, subject to change by the time you get there etc etc) so try to build up as little UK state pension as you possibly can.

**Mailman** · 16 November 2006, 21:39

I had asked work if I could transfer the funds in to shares in the company I work for BUT Gordo wont let me do this, according to HR.

So I guess Ill just go for the next best thing, get the money out of the country and in to a fund I can cash up and f8ck gordo!

Mailman

**Gonzo** · 16 November 2006, 21:55

Originally posted by Mailman

I had asked work if I could transfer the funds in to shares in the company I work for BUT Gordo wont let me do this, according to HR.

So I guess Ill just go for the next best thing, get the money out of the country and in to a fund I can cash up and f8ck gordo!

Mailman

In the UK your money goes into your pension tax free, the trade off is that you can't get it out again until you retire - unlike your country where your super schemes are simply big savings schemes without tax benefits so you can usually get your cash back when you want (Mrs Gonzo cashed hers in to fund her trip over here).

I think that you will be able to transfer your pension to NZ but there will be restrictions on it and I read that those restrictions will last for five years before you can cash in the pension without facing a hefty penalty. I have only given it a quick once over though so you should take professional advice.

**Mailman** · 17 November 2006, 11:08

I can live with the five year thing...I just want that money out of Gordo's reach and within my reach.

After all, its only fair

Regards

Mailman

Pensions and opting out