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Qualifying Recognized Overseas Pension Scheme

 
 

(a) What is Qualifying Recognized Overseas Pension Scheme (ROPS)?

A Qualifying Recognised Overseas Pension Scheme, or QROPS, is an overseas pension scheme that meets requirements set by Her Majesty's Revenue and Customs (HMRC). A QROPS facility can receive transfers of UK Pension Benefits without incurring an unauthorised payment and scheme sanction charge.

(b) Who can opt for QROPS?

A person who has accumulated pension fund in UK and wishes to transfer the same to India.

(c) What products of Max Life are QROPS?

Two of the Max Life products are ROPS

  1. Max Life Forever Young Pension Plan – UIN 104L075V01
  2. Max Life Guaranteed Life Time Income Plan – UIN 104N076V01

(d) What is the difference between QROPS and ROPS?

QROPS stands for Qualifying Recognised Overseas Pension Scheme and ROPS stand for Recognised Overseas Pension Scheme, both are interchangeably used.

(e) What is “Pension Age Test”?

The ‘Pension Age Test’ test sets a limit for the earliest age from which benefits can be paid to the member and the scheme retain the ability to meet the requirements to be a ROPS. This age limit applies to any benefit payment - both pensions and lump sums. Benefits payable to the member, to the extent that they relate to the transfer, must not be payable earlier than normal minimum pension age (55 years) (see PTM062210) unless the member is retiring due to ill-health (see PTM063400).

(f) What is the Minimum age of vesting and minimum age for receiving annuity for Max Life ROPS for UK tax relief funds?

There are two products that Max Life offers under Max Life ROPS for UK tax relief funds:

  1. Max Life Forever Young Pension Plan: Max Life Forever Young Pension Plan is a Unit Linked Pension Plan.
    The minimum vesting age for UK tax relief fund for Max Life Forever Young Pension Plan is 55 years.
  2. Max Life Guaranteed Life Time Income Plan: Max Life Guaranteed Life Time Income Plan is a Traditional Non Linked Non Participating Immediate Annuity Pension Plan.
    The minimum vesting age for UK tax relief fund for Max Life Guaranteed Life Time Income Plan is 55 years.

(g) What is Entry age limits for Max Life ROPS for UK tax relief funds policies?

For Max Life Forever Young Pension plan entry age (age as of last birthday) limits are 30 years to 65 years.

For Max Life Guaranteed Lifetime Income plan entry age (age as of last birthday) limits are 55 years to 80 years.