Guernsey to introduce 30% pension lump sum to boost QROPS sector

Guernsey appears set to raise to 30% its pension commencement lump sum - or tax-free cash as it used to be known - next year in order to match Jersey and the Isle of Man.

A proposal to increase the current 25% level has been through several stages of the pre-legislative process and is awaiting a date to be voted on in the States of Guernsey, the island’s parliament.

The main driver for the change is to make Guernsey’s pension rules as attractive as those of its Crown Dependency neighbours from an international perspective, primarily the QROPS market.

Local pension companies expect the change – the passage of which onto the statute books is said to be a formality - to be made before 2011.

Roger Berry, managing director of Guernsey QROPS provider the Concept Group and chairman of the local pension trade body’s QROPS committee, said: “There’s absolutely no reason why Guernsey should not offer a 30% pension commencement lump sum as part of a modern pension regime and create a level playing field with the other Crown Dependencies.”

In July, International Adviser revealed that Jersey was hoping to pass legislation to kick-start its own QROPS industry by 2011.

http://www.international-adviser.com/article/guernsey-to-introduce-30-pension-lump-sum-to-boost-qrops-sector

http://www.qrops-advers.com