Qualifying Recognized Overseas Pension Scheme (QROPS)

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
• Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
• Do more with plans that offer pure protection, retirement planning and investment options

Catering specifically to expats, the Qualifying Recognized Overseas Pension Scheme (QROPS) allows working individuals moving out of the United Kingdom to make fund transfers anywhere in the world and in India. Along with the option of fund transfers, the QROPS comes with the advantage of tax benefits and return on investment. The Qualifying Recognized Overseas Pension Scheme is regulated by the HMRC (Her Majesty's Revenue and Customs).

Why you should opt for Qualifying Recognized Overseas Pension Scheme (QROPS)

For working individuals in the United Kingdom who are enrolled in any of the pension schemes, opting for the Qualifying Recognized Overseas Pension Scheme is the best option. The QROPS allows expats to transfer their funds anywhere in the world tax efficiently, structure a post retirement annuity plan or a fixed income, and make a 25% tax free withdrawal from the retirement corpus.

Benefits of the Qualifying Recognized Overseas Pension Scheme (QROPS)

Opting for the Qualifying Recognized Overseas Pension Scheme (QROPS) comes with a plethora of benefits for expats moving out of United Kingdom. Some of the benefits are mentioned below:

• Transferring funds in other cases could attract a tax surcharge up to 55% on the retirement corpus in the United Kingdom.
• Expats can utilize the accumulated corpus to structure an annuity plan or a fixed income plan post retirement.
• When an expat has reached a pensionable age, he/she can make a tax-free withdrawal from the corpus up to 25%.
• Through the Qualifying Recognized Overseas Pension Scheme (QROPS), expats can transfer funds anywhere in the world tax efficiently.
• The Qualifying Recognized Overseas Pension Scheme (QROPS) comes with a wide range of products to choose from for expats. Individuals can choose a pension product that specifically suits their needs and requirements.
• Make high return investments using the pension corpus.

Presence of Qualifying Recognized Overseas Pension Scheme (QROPS) in India

Despite India having a large number of citizens working in the United Kingdom, expats have failed to utilize the benefit of QROPS. This is largely due to the lack of awareness of the scheme, ignorance of the related schemes, investment options and the biggest advantage of tax efficiency when making fund transfers. That said, HDFC Life launched Qualifying Recognized Overseas Pension Scheme (QROPS) transfers in 2013-14 and the product is rapidly catching a grip on expats moving back to the country or transferring back to India.

HDFC Life Qualifying Recognized Overseas Pension Scheme (QROPS) products

Having always envisioned the need for retirement plans, in 2013-2014 HDFC launched retirement products which function as part of the Qualifying Recognized Overseas Pension Scheme (QROPS). The products are even registered with the HMRC (Her Majesty's Revenue and Customs). Currently, HDFC Life has launched six products affiliated with the Qualifying Recognized Overseas Pension Scheme. The HDFC Life products are listed below:

• HDFC Life Click 2 Invest ULIP
• HDFC Life Click 2 Retire
• HDFC Life Cancer Care
• HDFC Life Click 2 Protect Plus
• HDFC Life Easy Health
• HDFC Life Click 2 Protect 3D Plus

FAQs

1. When did the Qualifying Recognized Overseas Pension Scheme come about and what was the main reason behind it?

The Qualifying Recognized Overseas Pension Scheme was launched in 2006 by the HMRC (Her Majesty’s Revenue and Customs). The main focus of the scheme was to enable expats in United Kingdom to transfer their pension funds anywhere in the world.

2. Who is eligible for the Qualifying Recognized Overseas Pension Scheme?

Anyone who has worked in the United Kingdom and has started a pension scheme is eligible for the Qualifying Recognized Overseas Pension Scheme. For those that have an already existing pension scheme, they can only receive the retirement corpus in the form of a fixed income or annuity.

3. What happens to the Qualifying Recognized Overseas Pension Scheme corpus after the death of the candidate?

The corpus is passed on to the dependants or the beneficiaries of the candidate.

4. How long does it take for the Qualifying Recognized Overseas Pension Scheme corpus to be transferred?

Once the transfer has been approved, the corpus will be transferred in couple of weeks to a couple of months, depending on the complexity of the situation.

5. At what age can I make a withdrawal from the Qualifying Recognized Overseas Pension Scheme corpus?

Once you have reached the age of 55 you will be able to make a partial withdrawal from the Qualifying Recognized Overseas Pension Scheme corpus. Individuals can make a tax-free withdrawal at a pensionable age up to 25% of the corpus. The remaining 75% of the corpus will be returned to the pensioner in the form of annuity or a fixed income.