Home Economy QROPS, Civil Servant Pension Schemes Facing Cuts

QROPS, Civil Servant Pension Schemes Facing Cuts

Civil Servants Pension difficultiesFormer and current Civil Servants are facing up to an uncertain future as it appears that further amendments could be made to pension schemes. For those who have already left the sector to pursue a different path either at home or abroad, the chances are that before retirement is reached the age will be extended, and benefits could be further reduced. For those still paying into their pension, contributions will be increased.

It is hoped that these amendments will assist with the somewhat overwhelming task of trying to retrieve the deficit which the public sector currently sits in. However, the backlash could be even more cataclysmic as the threat of strike action remains a very real presence.

Current staff are already demonstrating a state of disquiet in relation to cut backs which have affected working environment conditions, but attacking retirement plans with the same cut-back mentality will be taken very seriously.

Former Civil Servants who now live abroad still have the opportunity to transfer their accrued pension into an overseas scheme, but this door is set to be closed in April 2015. Transferring a Civil Service Pensions to QROPS is possible, however, as part of the Budget 2014 announcements, all UK-based unfunded public sector pensions will no longer be allowed to transfer into an alternative scheme. This will come as quite a blow to anyone based in the UK planning to retire abroad, as their scheme will not only be locked into the uncertainty of seemingly endless legislative changes, austerity measures, and huge deficits but will also be exposed to the risk of currency fluctuations when they are able to draw their funds.

Advice on QROPS

QROPS providers are reporting a huge lift in enquiries as a result of the most recent announcements. Many expats see the UK’s pension market as being too risky to keep their future invested in. It’s certainly difficult to argue against, and with the extra benefits a QROPS offers on top of the stability and deficit-free fund sadly absent in the UK right now, it’s unarguably well worth considering before the door closes for good.

A QROPS is not the right answer for every single person concerned about their retirement. Much depends on the level of the pension and the benefits it comes with, however an experienced advisor will be able to shed some light on the right way to go for those concerned that they are set to lose out by keeping their funds in the UK.

Mohsen Salami
Mohsen Salami
Mohsen Salami, 24, was the first reporter in Pars Herald's sports desk. He joined Pars Herald when he was studying in high school and Mohsen acted a significant role to grow Pars Herald in Isfahan. Salami joined Islamic Azad University of Isfahan and studied in civil engineering field. Upon his graduation, he started his cooperation with several private civil companies in Isfahan province but he regularly contributes to Pars Herald group. City: Isfahan Phone Number: +989369941073 Email: Mohsen {at} ParsHerald.com Name in Persian: محسن سلامی

Stay Connected


Must Read

Akbar Hashemi Rafsanjani will not Run for President in 2013

As Iran is suffering from internal and external problems, many analysts believe Expediency Council Chairman Ayatollah Akbar Hashemi Rafsanjani can resolve the current issues...

Akbar Hashemi Rafsanjani will not Run for President in 2013

As Iran is suffering from internal and external problems, many analysts believe Expediency Council Chairman Ayatollah Akbar Hashemi Rafsanjani can resolve the current issues...

Invest Now To Make The Most Of SEIS Tax Breaks

Seed Enterprise Investment Scheme (SEIS) fund managers are warning investors to buy their equity stakes in new start firms now rather than miss the...

Human Impact Is Killing The Planet, Warns WWF

Man is revealed as the world’s fiercest predator in a new study by the World Wildlife Fund. Nature is fighting for survival against an onslaught...

Related News

QROPS Set for Tax Reductions

QROPS providers are predicting tax reductions on withdrawals from their schemes in line with the current legislation amendments in the treatment of UK-based schemes. HMRC...

Christmas Is Not Always A Time For Goodwill

Christmas is a time for families and friends to catch up and hang out - but not if you dread the sight of them. Expats...

Malta QROPS Transfers for USA Residents and Citizens

Transferring a British pension to a Malta QROPS (Qualifying Recognised Overseas Pension Scheme) can offer real retirement saving benefits to expats. If you already live...

University Pensions Schemes Open for QROPS, but not for Long

University lecturers and staff have already seen cut backs affecting all areas of their day to day work, however it has come to light...

QROPS: New UK Retirement Trends Revealed

As the number of UK residents reaching the retirement age of 65 grows year by year, the amount not wishing to retire at this...


Please enter your comment!
Please enter your name here