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Thread: What Happens with a UK state pension on transfer?

  1. #1
    Join Date
    Sep 2008
    Location
    Christchurch from Scotland
    Posts
    2,226

    Default What Happens with a UK state pension on transfer?

    My UK based in laws are thinking about making the move to join us. They are 80 and 73... So hoping it may be possible, although well aware of the need for them to remain in good health for a while...as looks like the EOI would not be selected until at least August 2016 at the current rate.

    I am trying to understand on their behalf what happens with the state pension. They have a UK state pension, not sure how much is state second pension, if any.

    I understand that the amount they are receiving is frozen when they leave the UK. Do they apply on arrival here for super? It appears to state that some UK residence counts under the reciprocal rules (they have been there all their working lives).

    I know that anything a UK resident gets from the UK is deducted from super payable. Just trying to ascertain if they will only get UK pension at frozen level subject to FX variation for the rest of their lives, or if it will become an NZ super amount. Neither government website is particularly clear...and so far have not tracked down a website to the manuals on either side of the world. Just wondering if anyone has any experience?

    Thanks

    Mamee

  2. #2
    Join Date
    Jan 2008
    Location
    Tauranga, Bay of Plenty
    Posts
    996

    Default

    Once they get residency they will be able to make an appointment with WINZ Superannuation Dept (not sure if they will need to complete some time living here or not but WINZ super will answer any questions you have just give them a call) complete forms and it will take approx. three months to organise the payment of the UK pension into the NZ government on a monthly basis, basically they will authorise on the paperwork that they except a bank account being opened with Westpac where the payment will be made into but this is a non accessible account to your inlaws. NZ super will be paid thereafter until they pass and then it will pass with them but you will need to notify the UK pensions complete with certificates so that it doesn't keep being paid into the NZ coffers. The three months will need to be done on a conversion via HiFx or similar on a monthly basis until they commence NZ super payments. I am not sure about taxation this end I cant remember if super is taxable or not.

    One other thing whoever passes first the remaining spouse can claim benefits from the UK for a 12 month period thereafter after filling in the usual forms and submitting to the UK pensions dept.

    The reason I know this is because it was what I had to do with regard to my hubbies state pension.

    If they have occupational pensions then that's another matter altogether and will be taxable by both the UK and NZ at the end of the 4 year tax free period allowed for immigrants. Hope this helps a little. Cheers Anni
    Last edited by catt; 14th September 2015 at 10:37 PM.

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