Guernsey moves to allow flexibility of benefits to international pensions

13 February 2015

Guernsey's Treasury and Resources Department has announced that it intends to bring proposals to allow flexibility of benefits to international pensions, such as Qualifying Recognised Overseas Pension Schemes (QROPS), held in Guernsey before the States of Deliberation this summer.

Jan Kuttelwascher, Guernsey's Deputy Treasury and Resources Minister, said: "In light of recent reforms announced by the UK government with regard to introducing 'pension flexibility', Guernsey's Treasury and Resources Department intends to propose an amendment to Guernsey's income tax law that would allow inward transfers to a Guernsey personal pension scheme the same flexibility of benefits as allowed by legislation of the jurisdiction from where the funds or benefits entitlement originate.

"Such a change would enable members in a Guernsey pension scheme that has QROPS status access to the same pensions flexibility offered by the UK and would extend both to transfers already made and to future transfers into a Guernsey personal pension scheme. The Department is also consulting with interested parties on how greater flexibility in retirement could be introduced, to ensure Guernsey's pensions industry can offer flexible and competitive pension products to encourage private pension provision."

Stephen Ainsworth, President of the Guernsey Association of Pension Providers (GAPP), said: "GAPP welcomes this announcement, which will ensure that Guernsey continues to offer an attractive product for international pensions business that provides the same flexibility of access to pension funds for QROPS transfers, as is being introduced in the UK. This proposal will also ensure that outward transfers can continue to be made to overseas pensions schemes that offer similar flexibility."

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