A QROPS on the HMRC list that’s also an RRSP recognized by the CRA. (Who writes this stuff?)

A Qualifying Recognised Overseas Pension Scheme (QROPS), is an overseas pension scheme that meets mandatory requirements set by Her Majesty’s Revenue and Customs (HMRC). A QROPS can receive transfers of UK Pensions. In Canada, QROPS are often also approved as a Registered Retirement Savings Plan (RRSP) by Canada Revenue Agency (CRA).

DB vs. DC?

A Defined Benefit (DB) plan, is a retirement account for which both an employer and employee make contributions that promise the employee a set payout at retirement e.g. two thirds of final salary. You do not have your own retirement pot but instead have a defined income.  A Defined Contribution (DC) plan is a retirement account where both an employer and employee make contributions to an employee’s own individual retirement pot – the employee has flexibility to take the income any way they wish but the amounts depend on how much was contributed and how those contributions were invested.

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Did You Know?

You might need advice before you are allowed to transfer a UK Defined Benefit pension plan.

To protect you from fraud the UK’s tax authority – HMRC – will not allow trustees to transfer a DB pension with a value of £30,000 or more without the advice of a consultant regulated by the FCA.
Did You Know?

When your pension plan starts paying out, the amounts received will be taxable in Canada whether you leave the pension in the UK or have it transferred to Canada.

If you transfer your UK pension to Canada, it may qualify to go into a special type of RRSP. There is no tax on the lump sum transfer and you would only pay tax when you take some money out.
Did You Know?

Your RRSP contribution limits are not affected even if you deposit a large amount from a recognized UK pension plan to a Canadian QROPS.

Your RRSP contribution limits are not affected even if you deposit a large amount from a recognized UK pension plan to a Canadian QROPS. You declare the amount transferred as income on your Canadian tax return and then take a…