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UK state pension and USA social security

UK state pension and USA social security

Old Jun 28th 2015, 1:44 am
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Default Re: UK state pension and USA social security

[QUOTE=Sailortobe;11685055]
Originally Posted by Disenchanted View Post
Currently 30 years, max amount £98/wk, April 2016 35 years, max amount £152/wk.
If your full retirement age is before April 2016 there is a provision for purchasing the extra 5 years.
Currently you can buy back 6 years for approximately £1000, which is a very good deal, then pay going forward.

Maybe I missed something in an earlier post, but I just retired at 65 with 30 years UK contributions and the pension is 120 pounds sterling per week.
I think you may have an additional amount because of how much you contributed in your work history. I believe there is a threshold that qualifies you for the state pension, if you meet the threshold for 30 years you get 30/30ths of that amount. If however, you contribute above the upper threshold it increases you final pension amount. I just checked and I misquoted the full basic pension amount, it should have been £115.95 and the new full basic pension as of April 2016 is £151.25, in my case I will get 26/35ths of the £151.25 hopefully.
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Old Jun 29th 2015, 3:34 pm
  #842  
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Default Re: UK state pension and USA social security

I have lived here in the USA for 28 years. I get both my UK pension and SS paid into my US bank. I do not pay tax in the UK, they ask you if you want to. All tax is paid here. I just filed my first tax return since getting my UK pension and all was well. You have worked for both and are entitled to both as long as you pay your taxes wherever you live you will be ok.
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Old Jun 29th 2015, 3:36 pm
  #843  
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Default Re: UK state pension and USA social security

I do not lose any of my pension having it paid here in the USA. I also get SS here, they do not take any out because of the UK pension, why would they, you have worked for it. They have a reciprocal agreement.
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Old Jun 29th 2015, 3:37 pm
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Default Re: UK state pension and USA social security

Yes you should.
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Old Jun 30th 2015, 5:13 am
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Default Re: UK state pension and USA social security

Originally Posted by faybees31 View Post
I do not lose any of my pension having it paid here in the USA. I also get SS here, they do not take any out because of the UK pension, why would they, you have worked for it. They have a reciprocal agreement.
Windfall Elimination Provision (WEP). If you have only been here 28 years I guess you haven't paid 30 years of SS contributions. In which case your SS maybe subject to WEP if you receive a pension(s) from the UK. You have told SS you receive a UK pension?


http://www.ssa.gov/pubs/EN-05-10045.pdf
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Old Jul 4th 2015, 4:51 pm
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Default Re: UK state pension and USA social security

First, just want to say that I've spent several days reading this entire thread, and it contains a treasure trove of really great stuff, so thank you to all the contributors! Having said that, I have three kinda odd questions which I hope someone can help me with.

1. I'm 63 and reached UK State Pension Age back in May 2013 when I was 61 and have deferred payment until this coming October. I'm not going to start claiming US SS benefit for another 2+ years. So, beginning this October, I'll be receiving my UK State Pension only for a couple of years. Right now, I have 29 years of US SS payments that qualify as "substantial earnings". By the time I start claiming my US SS benefit, I'll have 30+. Will I be WEPed as of the date I start claiming my UK State Pension (when I only have 29 qualifying years), or will I avoid it altogether by having 30+ qualifying years when I start claiming my US SS benefit? I think the latter but would really appreciate it someone could confirm that for me.

2. If someone is subject to WEP, is it recalcuated at the end of each year if the years of “substantial earnings” increases? In other words, will WEP decrease if that person continues to work and accumulates additional years of “substantial earnings”?

3. I have dual UK/US nationality and lived/worked in the UK until I came to the U.S. in 1984 . My spouse is US and has never lived or worked in the UK. Is he entitled to a spousal pension based on my NI contributions? If so how would he claim that? He doesn't have a NI#. My understanding is that spousal benefits will be greatly reduced by the new pension scheme but not sure of the rules now or what they will be after next April.

Sorry for so may questions, and thank you so much in advance for your response to them!
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Old Jul 4th 2015, 5:15 pm
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Default Re: UK state pension and USA social security

1) WEP is only applied when you start to receive SS. As you will have 30 years contributions WEP isn't something to concern you.

2) WEP is calculated at the start of receiving SS. Most people with a UK pension seem to hit the maximum WEP straightaway so no further recalculation will apply. If the maximum WEP wasn't deducted and you received a new UK pension after receiving SS you would need to inform SSA. I guess then a recalculation would take place.

3) Call the office which handles UK pensions for those living overseas and ask.
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Old Jul 6th 2015, 7:54 pm
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Default Re: UK state pension and USA social security

Thank you very much for your response! I shall make that call.
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Old Jul 10th 2015, 12:55 am
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Default Re: UK state pension and USA social security

Just a follow up re form 2002. I did speak with HMRC representative in the UK and he confirmed that with respect to the UK state pension, no taxes are deducted at source and he said there is no need to file form 2002 if one is a US resident/citizen. Previously, UK Pension officer had also stated the same.

On a different note, I have a question for any one who is getting their State Pension deposited in their UK checking account, if they have one. My brother, a US citizen, has one in London and he will shortly be filing the Claim for his UK State pension. What specific information is needed so that his pension is deposited directly into his London Account instead of the US. Aside from the Account #. I guess, IBAN wouldn't apply for UK account. Is the Branch/bank code and Bank identification code ( BIC) info available on the checks ? Thanks.
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Old Jul 10th 2015, 1:34 am
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Default Re: UK state pension and USA social security

Originally Posted by UK2US1979 View Post
Just a follow up re form 2002. I did speak with HMRC representative in the UK and he confirmed that with respect to the UK state pension, no taxes are deducted at source and he said there is no need to file form 2002 if one is a US resident/citizen. Previously, UK Pension officer had also stated the same.

On a different note, I have a question for any one who is getting their State Pension deposited in their UK checking account, if they have one. My brother, a US citizen, has one in London and he will shortly be filing the Claim for his UK State pension. What specific information is needed so that his pension is deposited directly into his London Account instead of the US. Aside from the Account #. I guess, IBAN wouldn't apply for UK account. Is the Branch/bank code and Bank identification code ( BIC) info available on the checks ? Thanks.
When he completes his claim, he will fill in the information as to where he wants his pension deposited.
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Old Jul 10th 2015, 1:57 am
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Default Re: UK state pension and USA social security

Originally Posted by UK2US1979 View Post

On a different note, I have a question for any one who is getting their State Pension deposited in their UK checking account, if they have one. My brother, a US citizen, has one in London and he will shortly be filing the Claim for his UK State pension. What specific information is needed so that his pension is deposited directly into his London Account instead of the US. Aside from the Account #. I guess, IBAN wouldn't apply for UK account. Is the Branch/bank code and Bank identification code ( BIC) info available on the checks ? Thanks.
I get my UK pension paid into my UK account. All they need is the bank sort code and his account number. They may or may not ask for his bank name and address. The sort code and account number will be on a cheque.
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Old Jul 10th 2015, 3:30 am
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
I get my UK pension paid into my UK account. All they need is the bank sort code and his account number. They may or may not ask for his bank name and address. The sort code and account number will be on a cheque.
Thanks for the info. Lansbury. I am helping him out om the claim form. Is the "sort code" stated on the cheque same as the routing # is on our checks?
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Old Jul 10th 2015, 6:14 am
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Default Re: UK state pension and USA social security

Originally Posted by UK2US1979 View Post
Thanks for the info. Lansbury. I am helping him out om the claim form. Is the "sort code" stated on the cheque same as the routing # is on our checks?
It is, it is six numbers similar to this. 52-11-34.
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Old Jul 10th 2015, 1:29 pm
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Default Re: UK state pension and USA social security

Originally Posted by UK2US1979 View Post
Just a follow up re form 2002. I did speak with HMRC representative in the UK and he confirmed that with respect to the UK state pension, no taxes are deducted at source and he said there is no need to file form 2002 if one is a US resident/citizen. Previously, UK Pension officer had also stated the same.
If your State pension is your only income from the UK, then that is correct. If you have other income in the form of interest, another pension or annuity, you will need to complete the 2002 form to avoid it being taxed in the UK.
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Old Jul 10th 2015, 6:39 pm
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Default Re: UK state pension and USA social security

Originally Posted by Sailortobe View Post
If your State pension is your only income from the UK, then that is correct. If you have other income in the form of interest, another pension or annuity, you will need to complete the 2002 form to avoid it being taxed in the UK.
Very true. In fact, HMRC guy said the same. I did think of clarifying this point for others' benefit after I had made the Post.

Need some feedback on the following issue. I recall I had read somewhere that under the current Pension system ( 30 years) one needed a minimum of 10 years contributions to qualify for the State Pension. ( 11 years under the old 44 year syastem). However, when I was talking to a DWP representative sometime back, she made a point that even if someone had worked ( contributed) only 1 year, they will still get some pension. She did not mention the minimum qualifying period, if any. So, what's the relevance of minimum 10 or 11 years then?

I am asking because my brother had made contributions through his employment while in England for 7 years prior to moving to California. Having retired he is now living abroad. I am just wondering if he would still need some US credits to qualify for the UK Pension. Of course he would provide his SS # and SSA address on the claim form as required. Talking of SSA address, which address should be note on the form? Baltimore general Admin on Security Street or the one in California? Thanks.
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