The time to act is now: Civil servants hit with pension transfer ban

Financial experts are urging those who have pension pots accumulated from the UK's public sector to review their retirement planning strategy sooner rather than later.

The urgency stems from the imminent ban on public sector workers with unfunded schemes transferring their civil service pensions outside the UK from 6th April 2015.

Nigel Green, the founder and chief executive of deVere Group, one of the world's largest independent financial advisory organisations, comments: "The countdown is on. In a month's time, those who have worked within Britain's National Health Service, its Armed Forces, its Police, its Fire Service or in its education system, are to have their retirement planning options reduced.

"Unfunded civil service pensions are a serious problem and, clearly, one that must be tackled."However, the decision to cut established retirement planning options is a hammer blow for those who have served and continue to serve Britain."

The deVere CEO continues: "For those with unfunded public sector pension schemes who wish to explore the recognised associated benefits of transferring their pension out of the UK into an HMRC-recognised scheme, the window of opportunity is about to be shut. The time to act is now.

"Failure to act in time would mean that those with such schemes who wanted to and qualified to do so would be banned from moving their own retirement funds into a safe, low-tax jurisdiction with the aim of safeguarding and maximising their pensions with greater flexibility and control."

The current consensus from the trustees, says deVere Group which has $10bn under advice and management, is that all signed and completed transfer documents must be submitted to the scheme trustees at the latest by the beginning of April for transfers to be honoured.

Due to the specialist nature of those wishing to consider these options, individuals should seek advice from an independent financial adviser with the relevant cross-border expertise.

Return to After The Job menu