I have just been told that under Section 20 of the Pensions Bill ALL overseas residents may find their pensions are not uplifted after 2016. Certainly that is how it reads.

Also those on private pensions where the Government took over the indexation of their contracted out portion - that portion also may not be uplifted.

Section 20 reads


20 Overseas residents
(1) Regulations may provide that an overseas resident who is entitled to a state pension under this Part is not entitled to up-rating increases.
(2) In this section “overseas resident” means a person who is not ordinarily resident in Great Britain or any other territory specified in the regulations.
(3) Regulations under this section do not affect the rate of an overseas resident’s state pension for any period during which he or she is in Great Britain or a territory specified in the regulations (but once the overseas resident ceases to be in Great Britain or a specified territory the rate reverts to what it would have been had he or she not been in Great Britain or a specified territory).
(4) Regulations under this section do not affect the rate of a person’s state pension once the person stops being an overseas resident.

But does it define overseas territories? I suspect for the time being this will not include the EEA countries!

I wouldn't read it that way. It only says "may" and that would allow for the existing rules that apply in some countries at the moment to continue, which clearly they will..

If it said "all" overseas residents "will" then that would be worrying.

My advisors say that it would be wise to prepare.

I am not sure what one can do, but I would suggest that everyone bombards whoever was their MP with as many letters as they can, threatening to go back and swamp the system. We all know how desperate all European Governments are to save money.

The below is copied from the Draft pension Bill towards the very end, to me this reads that in this respect it will be the same as currently ?


For overseas residents, regulations may provide that such a person is not
entitled to up-rating. This will enable similar provision to be made as under the
current retirement pension system. Regulations under this clause will be made taking
into account provision under relevant treaties, such as those in respect of the European
Union, and bi-lateral treaties providing for reciprocity in social security matters and
which cover up-rating.

Yes that confirms what I said - they have to include wording in the legislation to cover the existing situation but to suggest that this indicates a potential change in the current situation would be unwise.