Pensions overhaul planned by EC
Pensions and financial regulation are coming under the spotlight as the European Commission prepares to launch a wide-ranging review of retirement planning.
A discussion document is expected in the summer, following an announcement that the EC is wants to assess whether pensions are safeguarded enough as strains are put on the system by a growing number of retirees and the banking crisis.
The review will start with a green paper from the EC’s employment and social affairs directorate, according to an announcement from the body.
The EC wants responses to proposals to update the European pension framework to ensure adequate and sustainable pensions are delivered.
The EC spokesman did not mention whether the consultation will have any impact on QROPS schemes, but they are bound to play a part as 18 of the 30 European Union nations provide QROPS pensions with another five closely tied jurisdictions like the Guernsey, Iceland and The Isle of Man in the market as well.
Other continuing EC social and economic policy reviews are also likely to be considered as part of the consultation.
Any changes to the pensions framework that fundamentally alter QROPS affect British expats and international workers who have returned home from the UK after building up pension rights.
Many of the 3,500 or so QROPS pension transfers a year go to expats living in the favourite destinations of France, Spain, Cyprus and Portugal - but although the expats live in these countries, they are more likely to base their QROPS in tax friendly jurisdictions outside the EU.
Although QROPS pensions are an important financial tool for British expats that hold about £0.5 billion in funds, they are not a big factor in the billions tied up in pension funds across Europe.
The results of the EC pension consultation are not likely to be known until at least summer 2011.
Meanwhile, QROPS Adviser has the latest up-to-date QROPS pension information for anyone seeking a pension transfer out of the UK. Qualified tax and financial advisers can help with transfer to any of the 48 worldwide jurisdictions on the QROPS list.
