Re: UK state pension and USA social security
Originally Posted by lansbury
(Post 12113712)
I am not sure of the full details of transferring one to the other. But in your situation where you qualify for both SS and UK State pension you cannot do so.
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Re: UK state pension and USA social security
It seems, based on an old FT article, that years worked in the usa can over-rule the 10 year minimum in the uk. In other words, having worked in the uk for 6 years, I could have received 6/35 of the £155 per week pension without losing anything to WEP.
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Re: UK state pension and USA social security
I understand that the maximum WEP reduction is 50%, but what percentage are people seeing in practice? (I can't answer for myself, as am not yet taking USA SS.)
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Re: UK state pension and USA social security
Originally Posted by ybcohn
(Post 12114449)
I understand that the maximum WEP reduction is 50%, but what percentage are people seeing in practice? (I can't answer for myself, as am not yet taking USA SS.)
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Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12114477)
What the formula says, nothing more nothing less. ..... Depends on how many years of "substantial" contributions to SS you made: more years => less WEP.
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Re: UK state pension and USA social security
Very interesting reading. I have a new wife who is a US citizen living here in UK with me. She collects widows benefits from her first husband in US. She is also eligible for UK benefits based on my pension contributions. Will putting her US social security number on the application form affect her payments and fall under this windfall thing?
I might add we are both in our 70's. |
Re: UK state pension and USA social security
Originally Posted by Mattea123
(Post 12117823)
Very interesting reading. I have a new wife who is a US citizen living here in UK with me. She collects widows benefits from her first husband in US. She is also eligible for UK benefits based on my pension contributions. Will putting her US social security number on the application form affect her payments and fall under this windfall thing?
I might add we are both in our 70's. |
Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12117886)
but it will probably affect her US Social Security payments.
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Re: UK state pension and USA social security
Originally Posted by lansbury
(Post 12118020)
Her SS payment is based on her late first husbands contributions and even if his SS was subject to WEP once he died WEP ceases. Her SS should not be subject to WEP in these circumstances.
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Re: UK state pension and USA social security
Thanks for the good news.
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Re: UK state pension and USA social security
The Pension Service states that using their International Pensions Direct Payment service entails "competitive exchange rates" (e.g. when converting £ to $ and then sending the funds to a bank in the USA). Does anyone have practical experience with how good or bad those exchange rates really are?
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Re: UK state pension and USA social security
Originally Posted by ybcohn
(Post 12127887)
The Pension Service states that using their International Pensions Direct Payment service entails "competitive exchange rates" (e.g. when converting £ to $ and then sending the funds to a bank in the USA). Does anyone have practical experience with how good or bad those exchange rates really are?
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Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12117886)
It won't affect her payments from the British government, but it will probably affect her US Social Security payments. She is required to notify the Social Security Administration when she starts receiving pension benefits which were paid for with earnings that were not subject to Social Security taxes - i.e. earnings outside the US or exempt earnings in the US.
My husband is presently been subjected to WEP. He began receiving a small UK pension at age 66 (this past summer), from his UK self employment years which included nine Pre-1975 years. Now he has applied for his US pension and he's been told by the officer at his local SSA Office he's going to WEP him by 50%. We are arguing that his Pre-1975 UK years shouldn't count since they were flat rate "Stamp" payments and not based on actual earnings. Also during this Pre-1975 period he was at school and University and in those days awarded some of these 'stamp' years as one was at that time. Also included are 2 years of credits given to him by UK when he closed his company down and he went on a UK further education course. On top of which the UK Pension Service have recently awarded him 5 years of credits because he hit 65 just prior to when they brought in this NEW State Pension legislation requiring 35 years in April 2016. He had deferred taking both his UK and US pension and he's now 67 years old, (well tomorrow). In all he has 22 qualified years on UK record of which we believe (according to the SSA's POMS Manual's wording), that 16 years don't count toward WEP. (As described above). US SSA believe they can WEP the whole pension at 50%. I don't think they have the right to do this since it specifically states in POMS that foreign pensions amounts which CANNOT have WEP applied to them, are those which are NOT related to earnings. Credits such as unemployment and gifted awards by the UK Pension Service for making up his record (because he hit the magical 65 when they changed the rules this past April), surely should not count in the calculation. I mention the above because Pulaski says the US can only ignore WEP when voluntary payments were paid out of US taxed earnings. The POMS do not mention this fact....not that I can find. Your opinions on this matter would be gratefully received. Also is there anyone reading this that has managed to convince the SSA that Pre 1975 Stamp period does not count towards 'WEPing'. Thank you for reading. TM |
Re: UK state pension and USA social security
Originally Posted by Pulaski
(Post 12117886)
It won't affect her payments from the British government, but it will probably affect her US Social Security payments. She is required to notify the Social Security Administration when she starts receiving pension benefits which were paid for with earnings that were not subject to Social Security taxes - i.e. earnings outside the US or exempt earnings in the US.
TM |
Re: UK state pension and USA social security
Originally Posted by TiaMaria57
(Post 12139112)
Also is there anyone reading this that has managed to convince the SSA that Pre 1975 Stamp period does not count towards 'WEPing'. Thank you for reading. TM
You are also not the first to post here that SSA wanted to WEP the whole of a UK State pension regardless of how the contributions were paid on which it was calculated. Unfortunately the other person hasn't returned to say how that was resolved. |
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