Non-Resident Indians (NRI) working in the United Kingdom (UK) have to mandatorily contribute to various UK-based pension schemes and over time these contributions amount to a significant c
However, there is an alternative provided by HMRC (His Majesty’s Revenue & Customs), the UK-based regulator responsible for the collection of taxes in the United Kingdom. Instead of a direct withdrawal of their UK-based pension corpus, NRIs have the option to opt for a Qualifying Recognised Overseas Pension Scheme (QROPS). QROPS is designed to facilitate tax-efficient fund transfer of retirement corpus for expats leaving the UK.
In this article, we shall talk about the meaning of QROPS, how to transfer pension funds from UK to India via QROPS, key documents required as well as key QROPS rules and regulations.
QROPS or Qualifying Recognised Overseas Pension Scheme is a fund-transfer scheme which helps Non Resident Indians (NRIs) transfer their UK-registered pension corpus to India in a tax-effective manner. This is because transfer of UK pension funds to an Indian pension fund through QROPS allows NRIs to access low tax rates as per UK Government Actuarial Department (GAD) rules. This effectively helps NRIs transfer a larger portion of their accumulated retirement corpus to an Indian pension scheme, so that higher annuity payout is possible.
QROPS has proved to be highly beneficial for expats moving out of the country and has become one of the most popular means of transfer of UK pension funds to pension plans in India. Let’s know about the key advantages of QROPS:
**1. Axis Max Life Guaranteed Lifetime Income Plan (UIN: 104N076V21)**
This is a non-linked non-participating Individual General annuity Savings plan which offers guaranteed and regular income post retirement.**2. Axis Max Life Smart Guaranteed Pension Plan (UIN: 104N122V15)**
This is a Non-linked, Non-Participating, Single Premium Individual/Group General Annuity Plan that can provide regular income after retirement. This annuity plan is PFRDA-recognised and also available to NPS (National Pension System) subscribers in IndiaThis is a Unit-Linked* Non-Participating Individual Pension Plan which offers the benefit of life cover along with market-linked returns for added financial security during your golden years.
**4. Axis Max Life Smart Wealth Annuity Guaranteed (SWAG) Pension Plan (UIN: 104N137V06)**
This is A Non-Linked, Non-Participating Individual/Group General Annuity Savings Plan where investors have option to customize their policy by choosing suitable annuity options. The high degree of customisation is designed to help individuals stay on track to reach various financial goals.
You can choose to transfer your UK-based pension fund into any of these UK QROPS-compliant Axis Max Life Insurance pension plans easily and get regular post-retirement income in India. *Disclaimer: IN THE UNIT LINKED POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.The following can be considered as the basic rules and regulations for using the QROP scheme. This list also serves as the primary QROPS eligibility criteria:
To make a QROPS transfer, first of all make sure that you have read all the rules and regulations of the plan you have chosen and that you fulfill all eligibility criteria. Also note that this QROPS transfer process can take up to 5-8 weeks.
The following is a list of documents required for transferring UK pension fund to an Indian pension scheme under QROPS:
Note: The above is illustrative and additional documents may be required by applicable authorities as per updated regulations and on a case by case basis.
(Source: Individual Death Claim Paid Ratio as per Audited Financials for FY 2023-2024)
(Source : As reported to IRDAI, FY 2023-2024)
In force (individual) (Source : Axis Max Life Public disclosure, FY 2023-2024)
(Source : Axis Max Life Public disclosure, FY 2023-2024)
ARN: May24/Bg/30L
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“It’s not that I had difficulty in understanding and evaluating retirement plans online but talking to someone gives you that extra assurance that you are taking the right step. I have to commend the ways in which these Axis Max Life agents are trained and that only reflects in the way he explained the policy details to me . I will recommend Axis Max Life to anyone seeking a pension plan”
Mr. Mishra
“The idea of investing in a pension plan came to me from my father, who being a retired Army officer is very focused about planning early. However, it was only when he introduced me to his friend who is an Axis Max Life Agent, I realized it’s actually very simple. Anyways, I think it was a timely decision and I knew that while he will get his army pension, I’ll have to plan post my corporate life.”
Mr. Menon
Individual
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