Global: Transfer of Value

  • International Transfer of Pension Capital
    • In general it is possible to transfer pension capital from one expat pension plan/country to the next before pension age.
    • The constant value of the existing expat pension claims will be transferred to the next expat pension plan/country and implemented as suitable according to its pension claims.
    • It is relevant if the existing and new expat pension plan have a DB/DC/CDC/hybrid nature as this impacts how to determine its constant value and financial implications.
    • Each country has its own legal/tax/procedural regime and substantial differences exist. For the procedure it is relevant if the transfer is within or also outside of the EU.
    • Distinguish between authorization from civil versus tax authorities.
    • Distinguish between individual versus collective transfers and a legal entitlement versus just the possibility to ask for a transfer.
    • If a transfer transforms an existing DB/CDC pension claim into a DC pension claim, question if you prefer to trade existing and paid for guarantees for (substantial) interest rate and investment risks.
  • Transfer From versus Transfer To a Country
    • A country can have different legislative requirements about ‘transfer from’ and ‘transfer to’.
    • One often sees that countries with high quality pension systems have stricter regulations about value leaving the country than for value coming to the country.
  • Prevent Unnecessary Risks
    • Due to the technical, legal, tax and product aspects of international transfer of value, it seems advisable to obtain advice beforehand.