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Pension transfers by Armed Forces increase

Requests from Armed Forces personnel to transfer their pension abroad under QROPS are increasing.

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The Service Personnel and Veterans Agency (SPVA) said transfer requests per month had soared from around 20 to 30 per month to approximately 150 per month.

It also confirmed, while it was required to meet the requests of the individuals wishing to transfer their pension pot, it was currently in talks with HM Revenue & Customs and The Pensions Regulator regarding the increase.

David Johnson, spokesman for the SPVA, said: “As administrators of the Armed Forces Pension Scheme, we are obliged to meet individuals’ requests providing they are made in the proper way and that the receiving company is on the HMRC list of approved QROPS companies.

“However, there can be significant tax implications in making such a transfer and we would always recommend people seek independent financial advice.”

He added the SPVA is also keen to ensure that those entitled to an Armed Forces Pension are fully informed before making a decision under a QROPS, and the possible financial implications in doing so and where it has any doubts it will seek advice from the appropriate sources.

According to Steve Pimlott, an intermediary working for Windsor Pensions, the Latvian based Wenns International Pension Scheme is currently proving popular with a number of ex-military personnel.

“Wenns International is typically used by ex-servicemen as the firm has a lot of good packages, aside from just the pension transfer itself,” said Pimlott.

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