UK state pension and USA social security
Mar 24th 2022, 6:07 am
#1756
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: UK state pension and USA social security
Last edited by Giantaxe; Mar 24th 2022 at 6:10 am.
Mar 24th 2022, 1:34 pm
#1757
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Apr 25th 2022, 2:44 pm
#1758
Just Joined
Joined: Feb 2021
Posts: 8
Re: UK state pension and USA social security
Could anyone help me with a knowledgeable answer, please?
Background: I'm 70 years old & have resided in the US since 1999. I paid into the UK state pension system as an employee from 1967 through 1999. In the US I paid employee contributions from 2000 through 2015. There have been brief interruptions due to self-employment & unemployment.
When I reached retirement age I understood that my 30+ years of UK state contributions would be combined with my US SS contributions in order to give me a 'full' US SS pension. However, I was informed by my local SS office that, having worked for 10 years in the US, I now qualified for my US SS pension & any contributions from my previous UK existence were now null and void. Accordingly, if I successfully claimed from my UK contributions, any amount awarded would be deducted from my current US SS pension.
This means that I have to accept a minimal pension or work into my 70s in order to make up this shortfall which seems demonstrably unfair.
Is this correct?
Thanks,
Confused ol' man.
Background: I'm 70 years old & have resided in the US since 1999. I paid into the UK state pension system as an employee from 1967 through 1999. In the US I paid employee contributions from 2000 through 2015. There have been brief interruptions due to self-employment & unemployment.
When I reached retirement age I understood that my 30+ years of UK state contributions would be combined with my US SS contributions in order to give me a 'full' US SS pension. However, I was informed by my local SS office that, having worked for 10 years in the US, I now qualified for my US SS pension & any contributions from my previous UK existence were now null and void. Accordingly, if I successfully claimed from my UK contributions, any amount awarded would be deducted from my current US SS pension.
This means that I have to accept a minimal pension or work into my 70s in order to make up this shortfall which seems demonstrably unfair.
Is this correct?
Thanks,
Confused ol' man.
Apr 25th 2022, 3:05 pm
#1759
BE Forum Addict
Joined: Aug 2013
Location: Athens GA
Posts: 2,133
Re: UK state pension and USA social security
Apr 25th 2022, 4:42 pm
#1761
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,128
Re: UK state pension and USA social security
https://www.ssa.gov/forms/ssa-308.pdf
Apr 25th 2022, 6:26 pm
#1762
Lost in BE Cyberspace
Joined: Nov 2007
Location: Bay Area, CA
Posts: 13,103
Re: UK state pension and USA social security
Below is the form you need to send in to them. Note that section 5 asks about voluntary contributions.
https://www.ssa.gov/forms/ssa-308.pdf
https://www.ssa.gov/forms/ssa-308.pdf
I presume in my case, I don't need to submit such a form since I'm not subject to WEP having had 30 years or more of substantial earnings.
Apr 25th 2022, 10:33 pm
#1765
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: UK state pension and USA social security
Apr 26th 2022, 8:39 am
#1766
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Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,128
Re: UK state pension and USA social security
Fortunately SS was not needed in our retirement planning, I always put zero in the calculators. More important was staying on long enough to get a company pension and retiree health insurance, and we both retired at age 55. As they say in Louisiana, SS for us is lagniappe. I’ll take my SS in a few years time at age 70 as a bit of life insurance since my wife’s SS will be increased to match mine after I die. Even so it won’t be WEP’ed much as I’ll have 28 years of SS contributions.
Apr 26th 2022, 6:30 pm
#1767
Lost in BE Cyberspace
Joined: Nov 2007
Location: Bay Area, CA
Posts: 13,103
Re: UK state pension and USA social security
I 'retired early' in 2013 from my full time job, but I kept working as a consultant, with a goal of making just enough to pay bills and avoid the use of savings. A side-effect that I honestly didn't consider at the time was that it also increased my 'substantial earnings' years. I didn't know anything about WEP at the time, and had no plan to pursue a UK pension (something I learned about in this fine forum!). I just looked up what 'substantial earnings' are, and it was about $25k in 2020, so pretty easy to achieve as a consultant.
Apr 26th 2022, 7:31 pm
#1768
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,854
Re: UK state pension and USA social security
[QUOTE=Steerpike;13110477]I 'retired early' in 2013 from my full time job, but I kept working as a consultant, with a goal of making just enough to pay bills and avoid the use of savings. A side-effect that I honestly didn't consider at the time was that it also increased my 'substantial earnings' years. I didn't know anything about WEP at the time, and had no plan to pursue a UK pension (something I learned about in this fine forum!). I just looked up what 'substantial earnings' are, and it was about $25k in 2020, so pretty easy to achieve as a consultant.[/QUOTEhttps://www.ameritanianyc.com/]
Some other ways to achieve this as well… you could turn Schedule E income from a short term rental to Schedule C if you included certain service and it would then become liable to pay SS on the income..
Some other ways to achieve this as well… you could turn Schedule E income from a short term rental to Schedule C if you included certain service and it would then become liable to pay SS on the income..
Jun 1st 2022, 6:50 pm
#1769
Just Joined
Joined: Nov 2017
Posts: 15
Re: UK state pension and USA social security
Great thread. I have 28 of 49 years NI contributions as being voluntary. So my UK Gov pension should not see a significant WEP impact as far as I can see (I also have 25 years son sec years so WEP is lower impact there too). However, what will the SSA accept as proof of the voluntary contributions? Just the details on yearly contributions as being Voluntary Class 3 or Employment based contributions from my DWP account? Or do they require a formal letter from the UK Pension system? Anybody got the details of what is needed?
Jun 1st 2022, 7:04 pm
#1770
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,128
Re: UK state pension and USA social security
Great thread. I have 28 of 49 years NI contributions as being voluntary. So my UK Gov pension should not see a significant WEP impact as far as I can see (I also have 25 years son sec years so WEP is lower impact there too). However, what will the SSA accept as proof of the voluntary contributions? Just the details on yearly contributions as being Voluntary Class 3 or Employment based contributions from my DWP account? Or do they require a formal letter from the UK Pension system? Anybody got the details of what is needed?
https://www.ssa.gov/forms/ssa-308.pdf
