QROPS stands for Qualifying Recognized Overseas Pension Scheme. A QROPS is a pension scheme (pension plan) is a pension scheme/plan that is not based in the UK. For a pension scheme to be a eligible QROPS it must meet spefific criteria which is set out by the HMRC in the United Kingdom.
If you are living in Canada and wish to transfer a UK private pension plan to a foreign scheme, it must be designated as a QROPS. If it is not designated as a QROPS you could face penalties of up to 55% of the value of your pension plan.
If you are an eligible candidate to transfer your pension scheme from the United Kingdom to Canada, we will help you from start to finish with the entire transfer process.
When the funds arrive in Canada, they will be placed into an “RRSP” account with a qualified QROPS investment provider. Currently the options for investment providers is limited, but you still have access to some quality investment funds and managers.
There will be certain restrictions on your funds when they arrive in Canada because the investment provider that your “RRSP” account is with must report all transactions within your account back to the HMRC.
Your pension goes into an RRSP account with a qualified investment provider when the funds arrive in Canada. Currently for mutual funds the investment provider is iA Clarington and for segregated funds the investment provider in Industrial Alliance. This list of fund providers may increase over time.
There are certain restrictions on the account when it arrives in Canada. We recommend reaching out to us to discuss your situation in more detail.
Your pension funds will be converted from Pound Sterling to Canadian funds when they arrive in Canada at the exchange rate at the time of deposit.
A few years ago there was no minimum age requirement to qualify. As of September 15 2019, you must be age 55 or older to be able to transfer your pension from the UK to Canada as per HMRC rules and guidelines.