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Pension Scheme/ Letter to Politicians

I’am a part-pensioner, with some Superannuation and a small overseas-pension.Being on a defined benefit pension, my income is virtually constant and cpi indexed, but with every rise in the super and overseas-pension my Centrelink pension is reduced by 50% and a further 30% due to taxation plu 1.5% medicare levy leaving me with $0.185 in every dollar.

What is particularly annoying, that as far the overseas pension is concerned I had no option in my country and a certain percentage of my wages was deducted towards the old-age pension and as the pension was based on how
much and how long a person contributed, had I remained in my country of birth and worked the same number of years that I worked in Australia plus the years that I worked there prior to my emigration, I would now be
living on a much better pension than I do here, but anyone can be wise in hindsight.

In recent years the compulsory super contribution has been introduced in Australia.  Could you please give me an answer to these questions.:

  1. is there any defined benefit  scheme open to a new entrant into the work-force, except Politicians, in Australia.
  2. if the answer to the first question is no, is there any other country which has a compulsory super scheme but does not provide the contributor with the choice of a defined benefit scheme.
  3. was the Australian scheme a completely new scheme or was it based on any other countries proven scheme, and which country was it?

Being interested in finance, I could not help noticing that most of the super-funds have lost contributors money recently, worst of all, overseas, AMP is a good example, and workers with very small contributions have lost
most of their contributions on fees of the funds.

I’am still waiting for an answer.

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  1. October 2nd, 2015 at 22:48 | #1

    Thank you (daveb) for your comments in conoictenn with the post five year non residence rules.We do not believe that this is a grey area at all. We hold written communication from HMRC, specifically addressing the issue of reporting requirements and taxation after the prescribed five year period, which states; Where a payment made by the QROPS falls outside the timeframe described above, such payments are not reportable and are not caught by the UK Authorised Member Payment provisions or any related Unauthorised Payment charges. Whilst we agree that strictly speaking HMRC intention is that the QROPS funds are intended for retirement ” it is important to understand what is meant by retirement’ in this context; Yes, UK domiciled schemes are intended for retirement in line with UK legislation. In granting QROPS status however, HMRC must be satisfied that the scheme is intended for retirement as defined by the country of origin and NZ registered superannuation schemes will not be signed off by the NZ government actuary unless they are.The cornerstone of the QROPS legislation is that after the period in question, the individual is bound by the rules of the QROPS’ jurisdiction only, whatever they may be and not those of the UK. In effect the UK authorities are allowing genuine ex-pats to work and be taxed by the laws of the country in which they are now living and in no way to be bound by legislation of a country in which they no longer reside. The (UK) Pensions Regulator classifies ‘trust busting’ under the term pension liberation’ which “…describes the process by which people release their pensions before retirement and convert them entirely into cash…There are no lawful means to achieve a release of funds before retirement through pension liberation.” A transfer to a QROPS and the known ability to withdraw are legally acceptable transactions as far as HMRC are concerned, as highlighted by their correspondence quoted above.Historically there have been numerous (usually) overseas trusts set up with the sole aim of allowing individuals to access their UK domiciled funds earlier than UK rules permitted. As a result of the Finance Act 2004, Pensions A’ Day on 06/04/06, represented the UK authorities placing legislation around overseas pension transfer issues that had indeed, up until then been a very grey area’. Hence, the birth of QROPS.If you need any further clarity with these points or require any more information, please let us know.

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  2. August 12th, 2009 at 20:54 | #2

    good work here
    onion

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