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British expats should maximise value of their pensions
MC Roy Albiston introduces
Toby Williams, Area Manager, and Glenn Reidie, Senior Consultant from the
deVere Group Thailand who spoke to PCEC members about UK pensions and some
important changes that will take place in early 2015.
UK corporate pensions are under stress, so British expats
should look for ways to maximise the “take home” value of their pensions.
Two representatives of the deVere Group Thailand - Toby Williams, Area
Manager, and Glenn Reidie, Senior Consultant - gave a talk about UK pensions
at the Sunday, November 9, meeting of the Pattaya City Expats Club. They
also touched briefly on two other topics: (1) information for U.S. citizens
on the Foreign Account Tax Compliance Act which came into effect in 2010;
and (2) strategies for a sustainable retirement income.
Toby Williams with the deVere
group Thailand describes the current UK pension crisis and described some
opportunities that are open to mitigate high taxes that will affect some UK
pensioners if they act now.
Toby Williams has spent the last decade working in the wealth management
industry in client facing and management roles, including six years with the
deVere Group in Thailand. Toby specializes in UK pensions, UK pension
transfers and portfolio management. For more information on the deVere
group, see www.devere-group.com/deVere-News/deVere-in-the-News.aspx.
Glenn explained that the deVere Group is the world’s largest independent
financial advisory firm. It does business in 109 countries (from 84 offices)
and has about $10 billion under management. In Thailand, deVere has offices
in Bangkok and Pattaya, with 50 expat advisors and coordinators.
Toby described what he termed a “crisis’ in corporate pensions in the UK,
where 87% of the defined benefit plans are under funded. Toby said that 15%
of the UK’s 7,800 pension schemes have had to take emergency measures.
Eleven large blue-chip companies on the London stock exchange have pension
liabilities that exceed their market capitalisation. The main reason why so
many plans are in trouble, Toby explained, is that returns on investments
have been below what was expected when the plans were first designed. About
60% of UK pension plan money is invested in government bonds, not equities,
which provide little opportunity for growth. Further, defined contributions
plans are in better shape. But, he added, a lot depends on how skillfully
the money is invested.
MC Roy Albiston presents the
PCEC’s Certificate of Appreciation to Toby Williams, Glenn Reidie, and their
able assistant for the interesting and informative talk on UK pensions, the
US FACTA requirements, and strategies for a sustainable retirement income.
Toby explained there are many factors that “eat away” at
one’s UK pension. For example, all pension income is taxed at the UK’s
highest marginal tax rate. Also, if the value of the pension is large
enough, supplementary taxes are imposed. In addition, if the pensioner
passes away and the beneficiary elects to take the pension as a lump sum,
there is a 55% “pension death” tax. For expats, there is also a currency
risk as Brits living in Thailand know very well having seen the exchange
rate of the Thai baht to the British pound go from 55 in 2010 to 43 in 2013.
There are ways for expats to maximise one’s UK pension income, minimise tax
and ensure that one’s beneficiaries receive as much of the value of the
pension as possible, Toby said. One of the most popular is called QROPS -
Qualifying Recognised Overseas Pension Scheme. Essentially, QROPS allows one
to transfer one’s frozen corporate UK pension to another jurisdiction -
Gibraltar being the most popular one - where the tax rates on pensions is
much lower and there are no “pension death” taxes.
PMTV’s Paul Strachan
interviews Toby William and Glenn Reidie on the porch of the Amari’s Tavern
by the Sea Restaurant about their informative presentation to the PCEC.
Toby described the rules governing QROPS and some changes
that will come into effect on 15 April 2015. Not all UK pensioners living
abroad would benefit from QROPS, Toby explained. Further, deVere Group
provides a service whereby they examine your pension situation and advise
whether QROPS would work to your advantage. For a fee, deVere can arrange to
transfer a UK pension to a foreign jurisdiction. QROPS cannot be used for
all government or state pensions.
With respect to strategies to produce sustainable retirement income, Toby
said that the goal is to preserve capital and generate decent and steady
income. He added that this is not easy to achieve. Portfolios containing
multiple asset classes - e.g., property, bonds, annuities, mutual funds and
stocks - have performed very well in recent years. Each year, one or two
classes will outperform the others, but over time a diversified portfolio
produces the best results.
Toby briefly mentioned the USA’s Foreign Account Tax Compliance Act (FATCA)
and its impact on foreign investments by Americans. Financial institutions
must report accounts held to the US Internal Revenue Service if they are
valued at US $50,000 or more. Institutions that are not compliant with the
Act can incur penalties in their dealings with US financial systems. Toby
said they do have some investment opportunities that might be of interest to
Americans, but they are compliant with FACTA and thus subject to the
reporting requirements.
After the presentation, Toby and Glenn were interviewed for a television
segment by Pattaya Mail TV. This interview is available on You Tube at:
https://www. youtube.com/watch?v= 678dkeqbItg&feature= youtu.be.
MC Roy Albiston updated everyone on Club activities and upcoming events and
then called on Judith Edmonds to conduct the Open Forum where questions are
asked and answered about Expat living in Thailand, especially Pattaya.
For more information on the PCEC’s many activities, visit their website at
www.pcecclub.org.
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Hospital contributes to Rotary ‘Wrap up a Child Project’
(L to R) RCES Charter President
Martin Brands, Janya (Nui) Rattanaliam, Head of the BHP International Marketing
(Domestic) Department; Nurse Apissada Unsuphan, BHP Patient Advocate Team; Dr
Pichit Kangwolkij, Daniel & Marianne Biel, Carl & Joy Dyson, and Neil Maniquiz,
Manager of the BHP International Marketing Division.
Paul Strachan
As the high season approaches in Pattaya we continue to enjoy the
tropical temperatures; however, for many in the north of the country, especially
those in the more mountainous areas, it is time to prepare for the coldest time
of the year.
Therefore, the recent donation of over 400 sheets and 34 bed covers from Bangkok
Hospital Pattaya to the Rotary Club Eastern Seaboard ‘Wrap up a Child Project’
came at the perfect time.
At the handover on the morning of Tuesday the 4th of November, Dr Pichit
Kangwolkij, CEO of Bangkok Hospital Group Eastern Region & Director of the
Bangkok Hospital Pattaya, stated that he fully recognizes there is a desperate
need for these types of projects to be initiated. By working with the Rotary
Club Eastern Seaboard, he is confident that the blankets and sheets would go to
those who need them most.
Pichit also stated that we have to bear in mind that, at this time of year, just
a short distance to the west or north of Pattaya, young children and the elderly
suffer from the effects of hypothermia.
Members of the Rotary Club Eastern Seaboard, including Past President Carl Dyson
and Charter President Martin Brands, were on hand to gratefully receive the
donation and to thank Dr Pichit and his team for their kind generosity.
The club, whilst working on water projects in the mountain regions of Thailand,
found a desperate need for warm clothes and bedding for the children and the
elderly.
The temperatures from October through to January regularly drop below 10C in the
mountainous regions and warm clothing and bedding is essential for survival. The
club noted that many of the children normally wear a pair of shorts and a
t-shirt, and that the low income for these families means that life can be most
uncomfortable and sadly sometimes lethal.
Last year the club was assisted by Swiss International Airlines, Bangkok Airways
and the Centara Hotel Group, and this year members are delighted that Bangkok
Hospital Pattaya has decided to recycle their old bedding and to work with the
RCES to give a great boost to the Wrap Up a Child project.
Now the RCES is preparing for the Pattaya International Ladies Club Holiday
Bazaar which will be held on Sunday the 23rd of November at the Holiday Inn,
where they will be selling goodie bags that members of the public can purchase
for a child at a cost of only 100 baht. The club will then deliver these along
with the sheets and bed covers to the remote mountain villages to make sure that
the items are received by those far less fortunate than ourselves.
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ISE joins Green Pattaya for beach cleaning
Students dig deep to clean the
drains.
Neo LongThum
On Saturday 8th November, 25 students from the International School of
the Eastern Seaboard met up with the Green Pattaya volunteers and Rotary members
to once again clean the Cosy Beach area. The plan was to get only small things
but sadly the state of the beach and the sea was really bad and required
everybody to do their very best for four hours. The sea was full of black
residue, maybe from Loy Krathong the day before, but also plastic and other
trash.
The three boats have been reduced to two boats due to the owner putting one on
fire after City Hall officials warned her about the boats. The people around
Cosy Beach have stop using the area as a garbage dump but there was still
plastic buried in the mud from the grey waterfall.
For the first time ever we saw a family using the area for sunbathing so we are
working in the right direction. When the rain stops, Green Pattaya will schedule
another cleaning for the area up and hopefully the boats will be gone at that
time.
The students were very active, removing large chunks of burnt boat parts and
they also collected 25 bags of rubbish. Due to other engagements, City Hall
could not come but they came after to pick up all the bags as usual.
The International School of the Eastern Seaboard enjoyed the day out and a new
cleaning is planned for January 2015.
Time to take a break for a group photo.
Sadly the state of the beach and the sea was really
bad and required everybody to do their very best for four hours.
The plan was to get only small things.
A Russia volunteer helps clean the sea.
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St. Andrews students visit Camillian Social Centre
The emphasis of the day was one of
caring, sharing and teamwork.
Bryne Stothard
On Sunday 12th October, 20 students from the Camillian Social Centre
Rayong (http://www.hiv-aids-kids.org/) joined 24 St. Andrews IGCSE and IB
students for a day of activities run by the school’s Art, PE and Music teachers.
The Camillian Social Centre is an orphanage for children living with the
HIV/AIDS virus.
The students worked together on 2 art projects with Ms. Castle (which will be on
display both within our school and at the Camillian Centre), participated a
football clinic run by Ms. McEwan, and had an ensemble of dancing, music and
singing with Mr. Muller. Mr. Collop was also on hand to make sure that the
students were giving their all.
Many thanks must also go to the PTG who financed the lunch for that day.
A lovely quote from Wow Tansuwan (Year 10) perfectly sums up the purpose of the
day, “It was fun, happy and yet quite a sad day for me, I enjoyed seeing them
(Camillian students) smile and play the different activities with us, and I hope
we can do this again next year. I remember one of the students (Kaew) who held
my arm at the end of our day together, she said, ‘thank you’ quite nervously,
but I knew that she was happy.”
The St Andrews School community also collected clothes, shoes and underwear for
the Camillian Centre, and sold handicrafts made by residents at the Camillian
Centre on the school’s annual International Day, which helped raise 11,873 baht
for the charity.
SAGV organized a collection for
the children at Camillian.
“This student led project is part of our emphasis on pushing
our more able IGCSE students to prepare for their IB community service
requirements during years 10 and 11. Our comprehensive Exceptional Learners
Program also offers students at KS3, IGCSE and IB the chance to compete against
Thailand’s top international school students via the Model United Nations,
Tournament of the Minds and World Scholars Cup competitions. We feel that these
opportunities give our students the confidence to compete and excel against the
elite students in Thailand, whether it be in competitions like Tournament of the
Mind or in their final exams,” Mr Bryne Stothard, IGCSE Coordinator at St
Andrews School, said.
St Andrews International School IGCSE and IBDP results are consistently above
international standards.
Students created some wonderful
art pieces together.
The day was a huge success.
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PILC plans out this year’s Christmas Bazaar
(L to R) Bernardo de la Garza, F&B
Manager at the Holiday Inn, joins PILC members Raegan Barnes, Joyce Aldridge
President Helle Rantzen, Sue Tait and Nancy Aly-Hegazy.
Paul Strachan
Pattaya International Ladies Club President Helle Rantsen teamed up with
PILC members Nancy Aly-Hegazy, Raegan Barnes, Joyce Aldridge and Sue Tait, and
the Food & Beverage Manager of the Holiday Inn, Bernardo de la Garza, to go over
the final details of this year’s Christmas Bazaar.
Now in its 21st year, this highly popular event continues to bring a touch of
the festive season to Pattaya.
It will be held on Sunday the 23rd of November at the Holiday Inn Pattaya and
will feature an abundance of stalls selling handicrafts, homemade preserves, and
Xmas decorations. A massage area for Mums will be set up whilst the kids are
entertained by Santa or have their faces painted.
Entrance is only 150 baht with children under 12 gaining entry free of charge.
For more information go to: www.pilc-pattaya.com
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