cafa123

Is there anyone out there that has researched the bi-lateral agreement with regard to pension payments? Being a non-lawyer, I'm confused.

My simplistic understanding is that one can apply for a US SS Pension, even if out of country if one has paid at least 18 months worth of contributions, AND that SS contribution paid in the 'other' country can be counted with some form of discount towards the eligibility criteria. Then the US SS people would take away any pension you are entitled to from the other country and remit the balance.

This may be complete hogwash, but is where my understanding is.

I use the term 'other country' as I have residency and paid contributions in both UK and Australia and would qualify in either country for a state SS pension. The US SS Pension is somewhat higher than either the UK or Australia.

Any views?

ldyinlv

My understanding is that one has nothing to do with the other, if you apply for US SS, it has no effect on on your British SS. I could be wrong, there is another thread on this subject somewhere however, i cant remember the name of it right now, but I will look for it for you.
Jackie

Sally Redux

I'm pretty sure you have to have 40 quarters of contributions, but it's the blind leading the blind with me. Yes, there is another thread going on the subject.

http://britishexpats.com/forum/showthread.php?t=696551

Jerseygirl

I think this is the thread you are referring to.

ldyinlv

Yep thats it Jersey, the OP will find help there..

cafa123

Great thread. Does anyone know about transferring a private US funded pension out of the US at age 59.5. I have contributed to a Defined Benefit Plan (3rd years now) and am entitled to draw at age 59.5 about $30k a year.

Q1. Can I transfer the lump sum into Aus or UK pension fund without tax liability.

Q2. If I take it as a US based account of say $30k PA how will this be treated for tax purposes if I'm not US tax resident?

Cheers
Colin.

Apologies if this is a thread highjack, but reviewing the last 11 pages it appears that this is a very general thread about pensions etc,

Rete

Not true. While certain credits from some countries can be transferred that is not true of all countries. You cannot do that with Canadian credits. Also it is not a social security pension but a social security retirement benefit.

Yes, they will count your UK retirement benefit from another country and apply it against your US social security retirement benefit. Not dollar for dollar but a percentage. This is why my DH who worked in the US for 11 years only gets $221 a month from Social Security as they counted a percentage of his Canadian old age benefit against his US benefit. He still gets his FULL Canadian old age benefit. This all falls under the Windfall Act. Look it up online.

I don't know about the 18 months but that does seem like hogwash as you need 40 quarters and if you are working full time that is only 4 quarters a year so you would need to work for 10 years to qualify for a social security retirement benefit.

cafa123

My bad - it states that 18 mths plus is OK if age 61 in 1991. Sorry. Most annoying :-)

Mummy in the foothills

Maybe this can help.
http://www.ssa.gov/international/Agr...phlets/uk.html

http://www.dwp.gov.uk/international/...nts-in-social/

http://www.direct.gov.uk/en/Pensions...on/DG_10026714

dunroving

Your 18 months may not be wasted though - you could apply it towards your UK pension. Unfortunately, though, if you already have 30 years of NI contributions, any extra won't make a jot of difference to your UK pension (at least under current rules).