A Defined Benefit (DB) plan, is an occupational pension for which both an employer and employee make contributions into a pooled fund for the benefit all employees It provides a promised level of income to each employee based on the number of years employed and income e.g. two thirds of final salary.  You do not have your own retirement pot but instead have a defined income.

To protect you from fraud and from making investments that may result in lower income from your pension, the UK’s tax authority – Her Majesty’s Revenue and Customs (HMRC) – will not allow trustees to transfer a DB pension with a value of £30,000 or more without the advice of a pension transfer specialist that is authorised and regulated by the Financial Conduct Authority (FCA).

If you are thinking of transferring a DB plan to Canada, you should contact an expert recognized by the FCA – there are not many firms that have the proper licence. We recommend Jim Bell of Dominion Financial Management in the UK.  Feel free to contact him directly or contact us and we will explain the process, discuss options and make a personal introduction if you wish. There is no charge for an initial discussion.

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Did You Know?

Some pension amounts are defined as “Trivial” and you can cash them in.

Right now, but subject to change, if the total lump sum value of your UK Defined Benefit and Defined Contribution pension plans is £30,000 or less you can withdraw the Defined Benefits amounts in cash and bring it to Canada.
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…
Did You Know?

If you are going to retire in Canada and you have a Defined Contribution Pension in the UK, life might be better if you transfer the funds to Canada.

If you leave your plan in the UK and it comes into payment, you will normally be paid in British pounds. You will have all the hassle and expense of converting every payment to dollars.