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By Barry Ryan
Great news for KiwiSaver members with Qualifying Recognised Overseas Pension Schemes (QROPS) funds, and the providers themselves! The New Zealand government has proposed legislation to address the issue of UK pension money (QROPS) stuck in KiwiSaver schemes due to a 2015 UK law change.
This means:
Those with trapped QROPS funds will finally be able to transfer the QROPs value to compliant schemes without facing UK tax penalties, allowing for more active management of their retirement savings.
KiwiSaver providers will see light at the end of the tunnel when it comes to the complexities of managing and reporting on QROPS funds within their schemes, reducing administrative burden and potential compliance risks.
This move is a win-win: it empowers KiwiSaver members to make the best choices for their retirement while streamlining operations for providers. It's a positive step towards a more desirable and efficient KiwiSaver system!
