UK Government Pensions
The Basic State Pension
The State or ?Old Age? Pension, does not qualify for a transfer. The State Pension is provided by the UK Government. Once you have built up enough qualifying years, you are entitled to this benefit, regardless of how high or low your income is in retirement.
You can claim the basic State Pension even if you receive a personal pension or other sort of retirement fund, such as a salary-related pension. The State Pension can be received in Australia in retirement as a regular income (lump sum payments are not available).Australian residents receiving a UK State Pension do not receive payments that are indexed according to inflation (as they are in many other countries). For more information on UK State Pensions visit http://www.thepensionservice.gov.uk/
Additional State Pension
The Additional State Pension (also called the State Second Pension and formerly the State Earnings Related Pension Scheme (SERPS)) is made up of the National Insurance Contributions paid in employment. Individuals may choose to transfer (known as ?contracting out?) to a personal pension scheme. The government therefore pays directly into that scheme. This scheme can be transferred.
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