IVCM (NZ) PIE Superannuation Fund

DOCUMENTS
Product Disclosure Statement
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The New Zealand Expat Superannuation Fund is a brand of the IVCM New Zealand PIE Superannuation Fund.

The IVCM (NZ) PIE Superannuation Fund is a regulated New Zealand based scheme which has been a Qualifying Recognised Overseas Pension Scheme for UK purposes since 26 June 2011.

The scheme is a foreign investment zero-rate Portfolio Investment Entity (PIE), which means that the rate of tax you pay as a member will be determined by your New Zealand Prescribed Investor Rate (PIR). This rate can be either 0%, 10.5%, 17.5% or a maximum of 28%.

The IVCM (NZ) PIE Superannuation Fund is recognised by HMRC as a Qualifying Recognised Overseas Pension Scheme meaning that it can accept a transfer of UK Pension funds.

New Zealand provides an incredibly tax-efficient, safe, stable and well-regulated environment for your retirement savings. New HMRC rules introduced in 2017/18 mean that you can now transfer your UK pension to New Zealand and withdraw the entire fund from age 55, potentially at 0% local tax.

The parties involved in the IVCM (NZ) PIE Superannuation Fund are as follows:

  • IVCM (Aust) Pty Ltd are the distributors who are responsible for distributing the scheme (ABN 16 608 923 477, AFSL 491530).
  • Ranfurly Strategic Limited are the Scheme Managers and are regulated by the FMA under reference FSP455547.
  • Public Trust are the supervisor of the scheme and responsible for supervising Ranfurly as the manager of the scheme. Public Trust are regulated by the FMA under FSP24561.
  • Adminis Custodial Nominees Ltd are the custodian who hold the assets of the scheme on trust. They are regulated by the FMA.
  • Administration Manager: Adminis NZ Limited are the administration managers who provide administration and online access.

IVCM NZ PIE SUPERANNUATION FUND (QROPS)

BENEFITS

Documents

Questions & Answers

The IVCM (NZ) PIE Superannuation Fund is recognised by HMRC as a Qualifying Recognised Overseas Pension Scheme (QROPS). This means that it can accept a transfer of UK Pension funds.

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension scheme that meets certain requirements set by HM Revenue and Customs (HMRC). A QROPS can receive the transfer of UK Pension Benefits without incurring an unauthorised payment and scheme sanction charge. The QROPS program was launched on 6 April 2006 as a part of new legislation with the objective of simplifying pensions.

A QROPS is similar in structure to a UK Self Invested Personal Pension (SIPP). They provide significant control over how to invest and take benefits while at the same time being very cost effective. The introduction of QROPS was to provide individuals who permanently leave the UK with a vehicle to save for a better retirement lifestyle.

A SIPP is a UK registered pension scheme whereas a QROPS is an overseas pension scheme which meets certain criteria set out by HMRC. However, both are very similar in terms of their structure. A QROPS is for the benefit of individuals saving for retirement who live outside of the UK and a SIPP is for the benefit of UK residents.

Yes, IVCM offer a wide range of retirement solutions including; QROPS, SIPP, QNUPS and company pension schemes.

You are eligible for the IVCM (NZ) PIE Superannuation Fund regardless of where in the world you live should you wish to transfer benefits from a UK registered pension scheme.

However, if you are not resident in New Zealand at the date your pension is transferred to New Zealand, the transfer will be subject to the Overseas Transfer Charge (25%).

People who are not NZ nationals are still eligible for a IVCM (NZ) PIE Superannuation Fund if they wish to transfer benefits from a UK registered pension scheme or make regular savings for their retirement from after tax income

People with small pension pots are still eligible for an IVCM (NZ) PIE Superannuation Fund however we strongly recommend members consider the appropriateness of the QROPS, any potential taxation, associated charges and investment criteria.

No, a QROPS must be held in a single name.

Saving for your retirement is important.  If you currently have no retirement savings the IVCM (NZ) PIE Superannuation Fund is a great place to start.  Speak to your financial adviser about putting in place a long term savings strategy.

To apply for the IVCM NZ (PIE) Superannuation Fund you simply need to complete and return our application form and provide us with the following identification documents:

For proof of ID – Passport or Driving License.
For Proof of Address – Utility bill no more than 3 months old.

We only accept original or certified copies.

You must read the Product Disclosure Statement before completing the application and deciding to invest.

It is not compulsory for you to involve a financial adviser when applying for an NZ (PIE) Superannuation Fund.

However, we would always encourage individuals to seek financial advice from a suitably qualified financial adviser if they are not comfortable with pensions and superannuation. It is also encouraged to involve a financial adviser where investment advice is required.

If you do not have a financial adviser, then you can search for one using www.unbiased.co.uk to locate an adviser in the UK. If an overseas adviser is required, please contact us and we can assist in finding an appropriately licensed adviser.

Member contributions to the IVCM (NZ) PIE Superannuation Fund are unlimited

Please contact our technical team for more information.

No, you are not entitled to tax relief on contributions made to the IVCM (NZ) PIE Superannuation Fund.

Yes, in most cases, however we strongly recommend that you seek financial advice. Transferring a pension scheme is a major financial decision and we strongly recommend that careful consideration is given to the appropriateness of the QROPS, any potential taxation and associated charges.

Yes, in most cases, however we strongly recommend that you seek financial advice. Transferring a pension scheme is a major financial decision and we strongly recommend that careful consideration is given to the appropriateness of the QROPS, any potential taxation and associated charges.

This will be considered on a case-by-case basis. You should be aware that not all overseas pension schemes permit transfers to other pension schemes.

Please contact our technical team for more information.

The IVCM (NZ) PIE Superannuation Fund is still beneficial to non-NZ residents as you would not be subject to tax in New Zealand. However, we strongly recommend that you seek financial advice to understand the tax implications in your new country of residence.

If you return to the UK you can continue to draw pension from the IVCM (NZ) PIE Superannuation Fund. Wherever member circumstances change, we strongly recommend reviewing the appropriateness of the QROPS, any potential taxation and associated charges.

Any change in relation to your personal circumstances and country of residence you are required to update IVCM in writing immediately.

IVCM (Aust) Pty Ltd
Lvl2, Suite 209, 25 Solent Circuit
Norwest Business Park, Baulkham Hills NSW 2153, Sydney

Tel: +64 (0) 4 888 1430
Fax: +61 (0) 8 8178 0257
Email: newzealand@ivcm.com

Yes, provided that the receiving scheme meets the relevant requirements and completes a due diligence process.

The charges for transferring to another provider are as follows:

Year 1 – 3%
Year 2 – 2%
From year 3 onwards – 1%

The IVCM (NZ) PIE Superannuation Fund offers 3 investment options in 2 different currencies, shown below:

  • IVCM Vanguard LifeStrategy® 40% Equity Fund, GBP
  • IVCM Vanguard LifeStrategy® 60% Equity Fund, GBP
  • IVCM Vanguard Conservative Index Fund, AUD

Please visit the Product Disclosure Statement for more information on the investment target and strategy.

No, you can hold all or part of your funds in cash until you are ready to invest them.

No. The IVCM (NZ) PIE Superannuation Fund is a member directed pension scheme and therefore all investment decisions are the responsibility of the member and their financial adviser. Neither IVCM nor any of its affiliates give advice relating to the suitability of investments and cannot be held liable for any losses as a result of investments held within the IVCM (NZ) PIE Superannuation Fund.

Yes, you can make as many changes as you like to the investments within the plan.

To submit a fund switch, you must send us a completed Investment Instruction form.

Yes, however the account balance will most likely decrease over time as your account balance will still be subject to ongoing fees and charges within the Fund.

Retirement is the act of taking benefits, pension commencement lump sum or income, from your QROPS. This can be done at any time after your 55th birthday. Members of the IVCM (NZ) PIE Superannuation Fund are never obligated to take benefits at a specified age and benefits can be taken before you stop working.

Yes, but only once you have reached age 55.

There is no maximum retirement age for members of the IVCM (NZ) PIE Superannuation Fund.

To set up regular income or take a one-off lump sum withdrawal, you must complete a Benefit Request Form and send it to newzealand@ivcm.com.

This depends on your residency status. For non-NZ residents, you can elect for a 0% Prescribed Investor Rate, meaning that you will not pay tax on the income you withdraw. However, you should seek professional advice to understand the tax implications in your country of residence.

The first four years of residency in New Zealand is known as the ‘Transitional Residency Period’ and for individuals still within this period, they will not be subject to tax on income or investment growth.
For individuals who have been resident for more than 4 years in New Zealand, they will be subject to tax at their ‘Prescribed Investor Rate’ (PIR). These rates are currently set at 10.5%, 17.5% or a maximum of 28% and your PIR depends on the level of income you earn per annum.

No, you can take your pension fund in stages, rather than securing your retirement income all at once. This is known as ‘phased retirement’.

An annuity is a type of insurance policy that provides a regular income for life. IVCM do not offer an annuity but you may use your QROPS funds to purchase an annuity from a third party insurance company any time after the minimum retirement age.

Please contact our technical team for more information

Your remaining balance in your IVCM (NZ) PIE Superannuation Fund will be paid to your estate upon death.  If you die intestate it will be paid in accordance with the direction given by the local laws in your country of residence at the time of your death.

Your remaining balance in your IVCM (NZ) PIE Superannuation Fund will be paid to your estate upon death.  If you die intestate it will be paid in accordance with the direction given by the local laws in your country of residence at the time of your death.

As the IVCM (NZ) PIE Superannuation Fund is written under discretionary trust, any lump sum paid on death is paid at the Trustee’s discretion and hence falls outside of the member’s estate for inheritance tax purposes.

The Product Disclosure Statement is available under documents

The IVCM (NZ) PIE Superannuation Fund is regulated by the Financial Markets Authority in New Zealand.

The IVCM (NZ) PIE Superannuation Fund is established under trust.

The Manager of the IVCM (NZ) PIE Superannuation Fund is a member of an independent dispute resolution scheme operated by Financial Services Complaints Limited (FSCL) and approved by the Ministry of Consumer Affairs.  Full details of how to access the FSCL scheme can be obtained on their website www.fscl.org.nz.  There is no cost to you to use the services of FSCL.

The IVCM (NZ) PIE Superannuation Fund is a member directed pension scheme and therefore all investment decisions are the responsibility of the member and their financial adviser. Neither IVCM nor any of its affiliates give advice relating to the suitability of investments and cannot be held liable for any losses as a result of investments held within the IVCM (NZ) PIE Superannuation Fund.

Members of the IVCM (NZ) PIE Superannuation Fund receive annual statements via email.  They also have access to online valuations.

If you have further questions then please contact us.

You may submit a complaint directly to the Trustee or through your financial adviser. The Trustee has an internal complaints process and undertakes to investigate your concerns promptly and fairly.

You may submit a complaint directly to the Trustee at:

Ranfurly Strategic Limited
Level 1, Awly Building
293 Durham Street
Christchurch 8013
New Zealand

The Trustee is a member of an independent dispute resolution scheme operated by Financial Services Complaints Limited (FSCL) and approved by the Ministry of Consumer Affairs. The Trustee has 40 days to respond to your complaint. If your complaint is unresolved after 40 days or if you are not satisfied by the Trustee’s response, you may refer the matter to FSCL by emailing info@fscl.org.nz or calling FSCL on 0800 347 257. Full details of how to access the FSCL scheme can be obtained on their website www.fscl.org.nz There is no cost to you to use the services of FSCL. FSCL’s physical address is:

Financial Services Complaints Limited
PO Box 5967
Wellington 6145

How to use IVCM NZ QROPS as a QNUPS for IHT planning (Inheritance Tax)?