Guernsey was once a prime location for Qualifying Recognised Overseas Pension Schemes with the Channel Island boasting a proud history as a sound financial centre with excellent consumer safeguards.
After a change in transfer requirements HM Revenue & Customs delisted all 310 of Guernsey’s QROP Schemes in April 2012.
Now, a plan being presented to lawmakers by Guernsey’s Treasury & Resources Department should result in the reestablishment of QROPS on Guernsey.
The proposals amend the pension provisions in Guernsey’s Income Tax Law to enable Pan Island occupational pension schemes to receive transfer payments from UK registered pension schemes.
Stephen Ainsworth, President of Guernsey Association of Pension Providers (GAPP), welcomed the move commenting, “This is a positive move to enable pan-island schemes to regain QROPS status, and hence enable employees moving from the UK to bring their pension rights with them,
“It supports businesses with pension schemes which operate across the islands.”
Ainsworth also said, “there will be issues for any Guernsey occupational pension schemes with members beyond the islands and the UK. Employers sponsoring such schemes should be taking action now, in order to avoid any unintended consequences of these proposed changes.”