Are you one of those who have worked so hard their entire lives to ensure a good life once it’s time to retire, only to be threatened with a possibility of having frozen pensions?Especially for those who plan on moving overseas, the mere thought that you will not be able to enjoy or invest what you have worked so hard for can be paralyzing.
Despite the problems that a lot of British expats are experiencing with regards to frozen pensions, you can avoid the same dilemma with proper planning. If you know for a fact that you will be moving to the US in a few years, know what your options are so that you can be ready with different sets of alternatives in case things do not go as you expect.
To those who have a deferred pension with their employer in the UK, for example, have the option to move this pension scheme to a US-based employer’s pension scheme. All that you need to do is to find out if the US pension scheme you will be transferring your UK pension to is certified under the Qualifying Recognized Overseas Pension Scheme or QROPS.
Here are some of the US-based pension schemes included in the QROPS list:
• Hospital & Medical Foundation of Paris, Inc. Tax Deferred Annuity Plan
• ABL/Shirley MacKay Solo 401 K Pension Plan
• Graham Rumbellow SEP IRA
• Currie & Brown Inc. 401(K) Plan & Trust
• Kraft Energy Systems, Inc. 401 (k) Plan & Trust
• Supply Chain RFID Consulting LLC SEP
• Prism USA Holdings Inc 401(K) Plan
There are a lot of other names on the QROPS list; all you need to do is do some research. Better yet, you can consult an expert on frozen pensions and pension transfers not only to find out if the pension scheme you are moving to is recognized, but to make the entire process more efficient for you as well.