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SMSF QROPS solution opens up

The issue of whether SMSFs can receive United Kingdom pension rollovers has taken a positive turn, with the latest release of the Qualifying Recognised Overseas Pension Scheme (QROPS) list including one self-managed fund.

On 1 July, the UK government removed all but one Australian superannuation fund from the QROPS list due to the ability of local super funds, including SMSFs, to pay out retirement savings benefits before a member reached the age of 55, AMP SMSF head of policy, technical and educational services Peter Burgess told the Chartered Accountants Australia and New Zealand National SMSF Conference 2015 on the Gold Coast today.

“The one that was on there was a Queensland fund, a public sector fund, and why was that on there? Because public sector funds don’t have to comply with these requirements,” Burgess said.

“Now they did reissue the list of QROPS on 1 September and there was one self-managed super fund appearing on the list.

“I haven’t seen the trust deed of that fund, but it looks as if it has restricted membership to over-55s, so you can only be in that fund if you’re over 55.”

He said that simple amendment to the trust deed appeared to be the element that allowed it back on the QROPS list.

“So we seem to have a solution here. It looks as if by making some amendment to the deed to restrict membership to over 55 may be enough for the QROPS register,” he said.

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