Paying Your Pension Overseas

Information about receiving payments direct to overseas bank accounts How to arrange for your pension to be paid this way Pension Rights and Pensions Increase

Information about receiving payments direct to overseas bank accounts

1. How does the process work?

Pension payments to non-UK bank accounts are processed by our banking partner. We inform our bank of the sterling value and due date of the pension payment and they then convert the payment into the local currency and issue directly to the beneficiary’s bank account.

2. How is the sterling value converted to local currency?

To ensure that payments are made as close to the payment due date as possible we submit instructions to our banking provider in advance of the payment date. On receiving this instruction the bank convert the sterling value to the local currency, at a commercial rate based on the actual market rate, at the time the file is received; a date earlier than when the payment credits the customer account. The converted local currency value is then issued to the customer’s personal account with a future settlement (credit) date.

It is very important to understand a couple of points regarding the exchange rates applied against your pension payments. The rates are not fixed at any arbitrary time each day; they are not “inter-bank” rates and; are not converted on the payment date.

The exchange rates are based on the actual market rate valid at the time of processing and subject to ongoing monitoring to ensure their competitiveness.

3. When will my payment be credited to my account?

Please note overseas payments may not credit your account on your normal payment date. Although the payment instruction will be sent to your bank on the payment date we cannot influence the period of time your bank will take in processing the payment. However this method of payment is more reliable and secure than receiving payments by cheque.

4. What is the cost?

We apply an administration charge for each overseas transaction. The amount of this charge is shown on your payslip as an ‘Admin fee’ deduction. The fee is currently £1.

5. Benefits to the Recipient

More secure and faster receipt of payment compared to cheques
Electronic credit to bank account
Increased reliability and convenience
No conversion bank charges as funds are paid in local currency

6. What are the issues regarding double taxation?

Teachers’ Pensions can only act upon instruction from Her Majesty’s Revenue and Customs (HMRC) and deduct tax at source based on the code supplied by them.

Any queries regarding taxation whilst resident outside the United Kingdom should be taken up with HMRC, details given below:

HMRC
HMIT Public Department 2 (MU2)
Ty Glas
Llanishen
Cardiff
CF14 5XS
Tel: 0845 300 3949

or HMRC
Centre for Non Residents
Fitzroy House
PO Box 46
Nottingham
NG2 1BD
Tel: 0115 974 1922

If telephoning from abroad please dial +44 8701 555 445 (HMRC, Cardiff).

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How to arrange for your pension to be paid this way

1. Which countries can we make payments to?

We are currently able to make payments by ACH (Automatic Clearing House) direct to the following countries:-

Australia	Denmark	Hong Kong	New Zealand	USA
Austria	France	Irish Republic	Portugal	Zimbabwe
Belgium	Finland	Italy	South Africa
Canada	Germany	Netherlands	Spain

Please select your country of residence from the above list. Please complete, sign and return to allow us to make arrangements to pay your pension direct to your account.

If you have already received a mandate form by post please also complete, sign and return to us.

We are required to provide specific details for each country to ensure payments are accepted and processed. All required information for countries within the EU, is given in an IBAN number (International Bank Account Number), which will be supplied by your bank. If you do not have an IBAN number your bank will advise you of the information required, or you can return a void cheque with a completed mandate form and our bank will draw the necessary information from this.

If your country of residence is not on the above list, we may be able to make payment by a wire transfer; we require the full bank name and address, account details, BIC/SWIFT code (if possible) and the full name of the account holder.

2. What you must tell us

You should let us know immediately of any changes to the account to which payments are credited. Failure to do this could lead to payments being delayed or misdirected.

In the case of late notification of change of details overseas payments cannot be re-issued until the original payment has been confirmed as returned to our account.

It is also important to note that we are required to confirm continuing entitlement of pension on a periodic basis. This is done in the form of a declaration of entitlement which is issued to pensioners residing outside of the UK. It is therefore very important that you inform us of any changes to your address details. If any correspondence issued by us is returned, due to an invalid address, future pension payments may be suspended.

3. How to contact us

If you have any queries specifically about overseas payments please contact us on telephone +44 (0)1325 745790 or email OverseasPensions@capita.co.uk.

If you would like to change your address or other personal details, this can also be done by clicking here.

Alternatively you can telephone us to make such changes, or with any other queries about your pension. If you query is not specifically about overseas payments please call +44 (0)1325 745088.