spouse of scouse

For people who have worked in Australia prior to March 2001, are returning to the UK and do not have sufficient NI contributions to receive a full basic State Pension.

This info has undoubtedly been covered before on BE, but I'm posting it here and on the UK forum for those who aren't aware.

The Social Security Agreement between the UK and Australia ceased in April 2001. However, the UK government made 'special arrangements' regarding the UK basic state pension, so as not to disadvantage returnees who worked in Australia during the time the Agreement was active.

If you're returning to the UK from Australia, your NI record isn't sufficient to claim a full basic state pension, AND you don't receive a pension from the Australian government valued at more than 20 pounds per week, every confirmed week you worked in Australia prior to March 2001 is counted as a week's NI contributions. Depending on how many weeks you worked in Australia, you can claim NI contributions up to the full amount of the basic state pension.

For clarity, I'll use my husband as an example (with his permission, thanks scouse!). He had 25 years NI contributions when he moved to Australia at the age of 40. He then worked in Australia for 25 years, and we moved back to the UK last year when he was 66. He receives 25/30th of a full basic state pension, based on his 25 years NI record.

Scouse isn't eligible to get this topped up to the full rate, because he receives a small Australian aged pension (around 50 pounds per week). Had his income and assets been too high to receive this Oz pension, the UK government would have paid him the full basic state pension amount (due to his pre-March 2001 Australian work history plus his 25 years NI record).

If his Australian pension falls to between 10 and 20 pounds per week, his UK pension will increase by the amount he's 'lost', up to 20 pounds - in other words say his Australian pension reduced to 15 pounds per week, his UK pension would increase by 5 pounds per week.

If his Australia pension reduced to nil, his UK pension would increase up to the full amount of basic state pension.

You must be resident in the UK to be eligible for any top up, you'll lose it if you subsequently leave the UK

I'm sorry, but I don't know how this works for people who will receive the 'new' pension/universal credit but I'm sure someone here will know! I'd imagine that the basic criteria regarding NI contributions matched to your Australian work history would stay the same you'd just need another 5 years. I'd also imagine that the Australian pension criteria would stay the same, although the amounts may change.

I don't know that I've explained all that very well, but hopefully the info will be of some use

Quokka

Thanks SoS, That's very helpful.

I think I can confirm this applies to the new pension as that is the subject of the letter I recently received from HMRC. My retirement date is 2018.

The only question for me is regarding Australian pension received. I would be in receipt of none as I won't be in Australia to claim it. I am assuming they don't expect me to return for two years in order to claim.

scot47

I have found the Overseas Section at National Insurance in Longbenton in Newcastle on Tyne to be very helpful in matters like this. Reciprocal NI issues are quite complex and personally I would leave them to the people in Longbenton who deal with them.

spouse of scouse

Personally, so would I, that's why I got my information from here:
Department for Work and Pensions | Newcastle Pension Centre (International Group) | TC201 Tyneview Park, Whitley Rd, Benton, Newcastle upon Tyne, NE98 1BA, Phone 00 44 (0) 191 2187777

spouse of scouse

I'd contact the International Pensions people at DWP and ask, Quokka. I emailed (I always prefer to have a written record), I sent the email to [email protected]
They acknowledged receipt of the email, and advised that they'd passed my query on to another section - I received a reply from that section around 10 days after I'd sent the first email so it was pretty good.
Good luck!

Quokka

I will do that. Thanks.

I had a long chat with them previously but the upshot was that I had to write to HMRC (letter not email) to get an answer on the years in Australia. The answer I got was of a general nature as they will not give a final answer until state pension is formally claimed.

jad n rich

With the current exchange rate its looking more likely I will spend some time back in the UK, so reading the pension stuff just in case I stay there.

At the back of the booklet on the new state pension book on page 33, it says contributions from overseas will be counted towards eligilibity but the payment will only be on the UK contributions.

It does not specifically mention the pre 2001 Australia situation.

So do additional contributions from overseas count toward eligiblity or a payment.

Jeez there are more pleasant ways to spend an afternoon than reading that.

Quokka

There is more info in this thread

http://britishexpats.com/forum/movin...utions-879252/