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SERP & QROPS

State Earnings Related Pension Scheme.

The State Earnings Related Pension Scheme (State Pension) is a payment you receive from the government once you reach state pension age. How much money you receive depends on your national insurance contributions. To receive the full amount available (currently £175.20 a week) you need to have 35 years of national insurance contributions during your working life. If you have less than 35 years of national insurance contributions then you will receive an amount that reflects the amount of years you have contributed.

It is helpful to note that you can defer taking your national insurance. This will result in a 5.8% increase in your state pension for every year you defer.

 Qualifying Recognised Overseas Pension Scheme.

The Qualifying Recognised Overseas Pension Scheme refers to any overseas pension scheme that the HM Revenue & Custom (HMRC) Acknowledges as eligible to receive transfers from pension schemes in the UK.

It is helpful to note that non-tax UK resident members can ask for the the payments to be paid out in gross by completing the relevant HMRC forms. With this, they can then get their grossed payments to be taxed based on the tax of the country of residence meaning they are not based on that of the tax rate in the UK but rather that of the persons current place of residence which may have lower tax rates.