Qualifying Recognised Overseas Pension Scheme ("QROPS")

This note provides an overview of the Qualified Recognised Overseas Pension Scheme ("QROPS")

Overview

QROPS were introduced in the UK on 6 April 2006 as part of new legislation introduced by the UK Government with the objective of simplifying pensions (also commonly referred to as "A-Day"). This scheme was introduced to allow individuals who had either left the UK or are intending to leave the UK, to transfer their UK registered pension scheme into an overseas pension scheme without suffering unauthorised payments or scheme sanction charges. In the UK, employees and employers, typically obtain benefits when they make pension contributions into UK registered pensions schemes. A member would only be able to retain the tax benefits, upon a transfer of his pension contributions, if the transfer is made to another UK registered pension scheme or a QROPS.