US QROPS

A QROPS (Qualifying Recognised Overseas Pension Scheme) also known as a ROPS, is an overseas pension scheme that meets HMRC’s conditions to accept transfers of previously accrued UK pension benefits to a scheme offering flexibility, tax efficiency and multi-currency options. Trireme’s US QROPS - the US Pathfinder Retirement Scheme - is based from our Malta office and is licensed and regulated by the Malta Financial Services Authority and included on HMRC’s register.

As a politically stable, full EU Member State with a double taxation agreement with the US, Malta is one of the most preferred international jurisdiction for QROPS transfers.

The taxation agreement between Malta and the US which is written under the 'model IRS treaty terms' gives clear guidance on how retirement benefits paid from qualifying Malta pensions are taxed. Unlike the taxation agreement between the UK and US, this allows for provision of retirement benefits in an efficient manner with no 'savings clause' - however Members should seek tax advice in relation to their personal situation.

Trireme's US QROPS is written under contract as opposed to a standard trust instrument. This is an important distinction as the use of trust based pensions require higher levels of reporting by members and the trustee than a contract. Members are still offered the same level of investment flexibility, retirement benefit options and security - but it takes away the need for foreign trust returns. Trireme will provide each member with full accounting details for their annual US tax returns to ensure compliance and transparency with the IRS and individual State tax departments where necessary.

Transferring accrued pension benefits is a complicated and ever-changing environment and it is highly recommended that independent financial advice and tax advice is taken before any transfer takes place - and in certain situations, it is a mandatory requirement for UK FCA regulated advice to be given.

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