How to transfer or withdraw private pension plans from the UK, US
Mint takes a closer look at the rules in the UK and the US. One cannot access pension funds before the retirement age. It has to be either transferred to Qualified Recognised Overseas Pension Scheme (QROPS) in India or one can continue holding it till retirement in the UK.
After retirement, Indians can get it in the specified bank account in India. In case of transfer, it is important to choose a QROPS approved by His Majesty's Revenue & Customs (HMRC), the national taxing authority of the UK. The list of approved schemes can be readily found on their website.
Akshara Roongta (28), who worked in the UK for two years before returning to Mumbai in December 2023, decided to transfer pension funds to India. She discovered she can apply for the transfer only after receiving the last paycheque. She did that before coming to India, but four months on, the transfer is yet to happen.
“Their document verification process is quite stringent. I was told to certify all documents by a lawyer. They shared a list of lawyers whom they trust.
I spoke to almost all lawyers but they are quite senior and don't notarise the documents," Roongta said. "It is hard to explain to the UK insurer that inexperienced lawyers do it in India who may not appear convincing on the call due to language barrier, but are very much credible," she says. Strangely, her husband, who worked with one of the group companies of the UK pension provider, could transfer his pension following the same procedure.
Deepak Kumar, an independent consultant of overseas pension transfer, says UK-based pension providers try to discourage the transfer. "Delays are quite common. When despite multiple follow-ups, we don't get the answer, I tell my clients to file a complaint.
Read more on livemint.com
