UK state pension and USA social security
#361
Re: UK state pension and USA social security
#363
Forum Regular
Joined: Feb 2006
Location: Nashville,TN
Posts: 81
Re: UK state pension and USA social security
It's as clear as mud to me,l'm none the wiser, but l appreciate u taking the time to answer. Thanks
The new UK pension after 2016 is, I think, a straight line computation over 35 years instead of over 30. The full pension will be about £149/week so you currently have 26/35ths of that and would need to contribute another 9 years to get the full amount.
Pensions Bill | The new flat-rate State Pension and what it means in practice
Below is a link to a calculator you can use to estimate how much your SS will be reduced due to WEP.
Calculators: Online Calculator (WEP Version)
Retirement Planner: How the Windfall Elimination Provision Can Affect Your Social Security Benefit
Pensions Bill | The new flat-rate State Pension and what it means in practice
Below is a link to a calculator you can use to estimate how much your SS will be reduced due to WEP.
Calculators: Online Calculator (WEP Version)
Retirement Planner: How the Windfall Elimination Provision Can Affect Your Social Security Benefit
#364
#365
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: UK state pension and USA social security
Your SS is dependent on your contributions not your citizenship so giving up citizenship does not mean giving up SS. Likewise, WEP is dependent on the amount of pensions you earned from jobs where you didn't pay into SS, not on citizenship.
#366
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: UK state pension and USA social security
#367
Re: UK state pension and USA social security
OK, thanks. But it didn't answer my question. If you give up your USC and continue to claim SS benefits, since you don't have to file US taxes anymore, does that mean your benefits are now WEP exempt?
#368
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: UK state pension and USA social security
What does WEP have to do with US taxes? As far as I know, the two are not linked in any way.
#369
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: UK state pension and USA social security
Originally Posted by durham_lad
Likewise, WEP is dependent on the amount of pensions you earned from jobs where you didn't pay into SS, not on citizenship.
#370
Re: UK state pension and USA social security
SS is not exempt as I understand it even though you don't file US taxes. When you apply for SS you have to declare other pensions that were earned in jobs that did not pay SS taxes. The folks that pay SS and the IRS are two different government bodies. Not having to file US taxes means you will never be taxed on your SS income. (As a USC, and with the income I have, I expect to be taxed on 85% of my SS income).
#371
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: UK state pension and USA social security
When you apply for SS you have to declare other pensions that were earned in jobs that did not pay SS taxes. The folks that pay SS and the IRS are two different government bodies. Not having to file US taxes means you will never be taxed on your SS income but has nothing whatsoever to do with WEP.
Yes, you will be WEP'ed on your SS whether or not you are a US citizen.
Yes, you will be WEP'ed on your SS whether or not you are a US citizen.
#373
Forum Regular
Joined: Feb 2006
Location: Nashville,TN
Posts: 81
#374
Forum Regular
Joined: Feb 2006
Location: Nashville,TN
Posts: 81
#375
Just Joined
Joined: Jul 2014
Posts: 20
Re: UK state pension and USA social security
Hi, I have just joined the board. I will likely be taking a WEP hit, so this has been an invaluable discussion. Interestingly, there was a federal district court case very recently, Rabanal v. Colvin, Oct. 18, 2013, in the federal district court in Colorado where the judge ordered the SSA to undo the WEP on a Spanish senior (who was representing himself). The court construed the regulations to disallow application of WEP where the foreign pension included both earnings related and voluntary contributions. The Judge said, "the regulation expressly excludes from the WEP any pension from a social insurance system [here the Spanish one at issue] that is based on residence or citizenship, regardless of whether it is also based on earnings." The Regulation he is referring to is 20 C.F.R. 404.213(a)(3).
This Order has not been appealed by the SSA and it is out of time to do so. I wonder whether it is worth further challenges based on that reading for those of us with voluntary as well as earnings related contributions, such as I made in the UK.
This Order has not been appealed by the SSA and it is out of time to do so. I wonder whether it is worth further challenges based on that reading for those of us with voluntary as well as earnings related contributions, such as I made in the UK.