It has come to light that the legislative changes introduced from 6 April 2015, restricting transfers from unfunded Public Service Pension Schemes to schemes offering flexible access to pension benefits, do not extend to those QROPS schemes which are not occupational pension schemes and which have their main administration in a state in the European Economic Area, other than the UK.

Teachers’ Pensions are writing out to members whose application to discharge their benefits to such a scheme was received by Teachers’ Pensions on or after 6 April 2015.  The letter will include new discharge forms and will ask members to complete and return the discharge paperwork if they still wish to proceed with the transfer.  However, members, and their advisors, must note that the scheme receiving the transfer must be on the revised QROPS list, updated by HMRC on 1 July 2015, have their main administration in a state in the European Economic Area, other than the UK, and must not be an occupational pension scheme. 

We are aware that HM Treasury are planning further legislation to cover the schemes described above within the restrictions on transfers from unfunded Public Service Pension Schemes. Consequently members need to be aware that in order for Teachers’ Pensions to make a transfer payment they must submit the completed discharge paperwork before any such legislation comes into effect.