Transferring an Argentinian pension

[roland]

I have a friend in Argentina who is contributing to a private pension arrangement (known as AJFP). I understand this is effectively an individual DC plan, but is invested and administered by managers approved by the State, and when the economy went belly up a number of years back, the State effectively raided these 'private' arrangements by directing their investment mix towards government bonds, which effectively were close to worthless investments.

Two questions:

(i) Is it advisable to invest in this scheme, even allowing for the tax relief
(ii) Can these be transferred back to a pension arrangement in Ireland, if my friend decides to return here?

I realise there are probably not many out there with Argentinian pensions knowledge, but hopefully there's someone!

Many Thanks.

 

[ClubMan]

invested and administered by managers approved by the State

Approved in what way? Similar to the way in which IFSRA regulated/registered financial intermediaries are "approved", or something else? Or is it more of a nationalised pension scheme in some way? What is the money invested in - state enterprises/schemes or the open market?

, and when the economy went belly up a number of years back, the State effectively raided these 'private' arrangements by directing their investment mix towards government bonds, which effectively were close to worthless investments.

Obviously that would be a concern. I'm not au fait with the current state of economic and social affairs in Argentina these days.

(i) Is it advisable to invest in this scheme, even allowing for the tax relief

You'd need to post more details about the scheme and the tax reliefs and the terms and conditions that apply.

 

[F. Kruger]

Roland,

He can't transfer it currently. Whether this will be possible at some distant date is anyones guess.

 

[roland]

Thanks for replies.

Clubman, my understanding is that the state licenses various fund managers or product providers who invest the money according to the regulations set down, but all the money is for the employees' use towards retirement benefits. Both Employees and Employers (can) contribute. Perhaps it's a bit like PRSAs here, but I think it's compulsory over there. However, the government can change the rules on investments, which is what they did a few years back!

My main question is really around the transferability. F. Kruger, thanks for reply. Do you know where I can get more detail on this as my friend is being told by a salesman in Argentina that it can be transferred ("for you special price", no doubt....). Also, what happens the money if he can't transfer it? Does it sit there unclaimed? If he returns to Argentina (to retire, say) can he claim it then, and is that the only way he can get at it now or in the future (based on current rules)?

 

[F. Kruger]

As far as I am aware there is only one 'recriprocal' agreement in place (Uk & IRE) for transferring pensions and sometimes it makes sense to do so, other times not.

It may be possible that there is some other arrangement available in Argentina whereby the money can be taken, but that is one for the Argentinians.

Do you know if there are any tax advantages in Argentina that go with the pension?