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UK state pension and USA social security

UK state pension and USA social security

Old Nov 24th 2016, 4:27 pm
  #1291  
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
I am not sure of the full details of transferring one to the other. But in your situation where you qualify for both SS and UK State pension you cannot do so.
I am not sure of the details either, but it is to do with having made sub-qualifying contributions into both schemes and then being allowed to aggregate the contribution years to qualify for at least some pension.
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Old Nov 25th 2016, 4:20 am
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Default Re: UK state pension and USA social security

It seems, based on an old FT article, that years worked in the usa can over-rule the 10 year minimum in the uk. In other words, having worked in the uk for 6 years, I could have received 6/35 of the £155 per week pension without losing anything to WEP.
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Old Nov 25th 2016, 2:04 pm
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Default Re: UK state pension and USA social security

I understand that the maximum WEP reduction is 50%, but what percentage are people seeing in practice? (I can't answer for myself, as am not yet taking USA SS.)
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Old Nov 25th 2016, 3:02 pm
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Default Re: UK state pension and USA social security

Originally Posted by ybcohn View Post
I understand that the maximum WEP reduction is 50%, but what percentage are people seeing in practice? (I can't answer for myself, as am not yet taking USA SS.)
What the formula says, nothing more nothing less. ..... Depends on how many years of "substantial" contributions to SS you made: more years => less WEP.

Last edited by Pulaski; Nov 25th 2016 at 3:41 pm.
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Old Nov 25th 2016, 5:19 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
What the formula says, nothing more nothing less. ..... Depends on how many years of "substantial" contributions to SS you made: more years => less WEP.
and also how much the pension triggering the WEP is. The online WEP calculator is very useful https://www.ssa.gov/planners/retire/anyPiaWepjs04.html.
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Old Nov 30th 2016, 11:47 am
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Default Re: UK state pension and USA social security

Very interesting reading. I have a new wife who is a US citizen living here in UK with me. She collects widows benefits from her first husband in US. She is also eligible for UK benefits based on my pension contributions. Will putting her US social security number on the application form affect her payments and fall under this windfall thing?

I might add we are both in our 70's.

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Old Nov 30th 2016, 12:57 pm
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Default Re: UK state pension and USA social security

Originally Posted by Mattea123 View Post
Very interesting reading. I have a new wife who is a US citizen living here in UK with me. She collects widows benefits from her first husband in US. She is also eligible for UK benefits based on my pension contributions. Will putting her US social security number on the application form affect her payments and fall under this windfall thing?

I might add we are both in our 70's.
It won't affect her payments from the British government, but it will probably affect her US Social Security payments. She is required to notify the Social Security Administration when she starts receiving pension benefits which were paid for with earnings that were not subject to Social Security taxes - i.e. earnings outside the US or exempt earnings in the US.
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Old Nov 30th 2016, 3:32 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
but it will probably affect her US Social Security payments.
Her SS payment is based on her late first husbands contributions and even if his SS was subject to WEP once he died WEP ceases. Her SS should not be subject to WEP in these circumstances.
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Old Nov 30th 2016, 3:42 pm
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
Her SS payment is based on her late first husbands contributions and even if his SS was subject to WEP once he died WEP ceases. Her SS should not be subject to WEP in these circumstances.
Interesting, and good news for Mattea's wife. ..... WEP is a very strange beast!
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Old Nov 30th 2016, 6:16 pm
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Default Re: UK state pension and USA social security

Thanks for the good news.
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Old Dec 13th 2016, 12:53 am
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Default Re: UK state pension and USA social security

The Pension Service states that using their International Pensions Direct Payment service entails "competitive exchange rates" (e.g. when converting £ to $ and then sending the funds to a bank in the USA). Does anyone have practical experience with how good or bad those exchange rates really are?
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Old Dec 13th 2016, 4:40 am
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Default Re: UK state pension and USA social security

Originally Posted by ybcohn View Post
The Pension Service states that using their International Pensions Direct Payment service entails "competitive exchange rates" (e.g. when converting £ to $ and then sending the funds to a bank in the USA). Does anyone have practical experience with how good or bad those exchange rates really are?
People that have it paid into banks in the US say it is a good rate.
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Old Dec 30th 2016, 5:13 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
It won't affect her payments from the British government, but it will probably affect her US Social Security payments. She is required to notify the Social Security Administration when she starts receiving pension benefits which were paid for with earnings that were not subject to Social Security taxes - i.e. earnings outside the US or exempt earnings in the US.
Hi Guys, my first post here. I've read 45+ pages of this forum and gained some useful information from all who have contributed and I'd like to thank each of you for your insight.

My husband is presently been subjected to WEP. He began receiving a small UK pension at age 66 (this past summer), from his UK self employment years which included nine Pre-1975 years. Now he has applied for his US pension and he's been told by the officer at his local SSA Office he's going to WEP him by 50%. We are arguing that his Pre-1975 UK years shouldn't count since they were flat rate "Stamp" payments and not based on actual earnings. Also during this Pre-1975 period he was at school and University and in those days awarded some of these 'stamp' years as one was at that time. Also included are 2 years of credits given to him by UK when he closed his company down and he went on a UK further education course. On top of which the UK Pension Service have recently awarded him 5 years of credits because he hit 65 just prior to when they brought in this NEW State Pension legislation requiring 35 years in April 2016. He had deferred taking both his UK and US pension and he's now 67 years old, (well tomorrow). In all he has 22 qualified years on UK record of which we believe (according to the SSA's POMS Manual's wording), that 16 years don't count toward WEP. (As described above). US SSA believe they can WEP the whole pension at 50%. I don't think they have the right to do this since it specifically states in POMS that foreign pensions amounts which CANNOT have WEP applied to them, are those which are NOT related to earnings. Credits such as unemployment and gifted awards by the UK Pension Service for making up his record (because he hit the magical 65 when they changed the rules this past April), surely should not count in the calculation.

I mention the above because Pulaski says the US can only ignore WEP when voluntary payments were paid out of US taxed earnings. The POMS do not mention this fact....not that I can find. Your opinions on this matter would be gratefully received.
Also is there anyone reading this that has managed to convince the SSA that Pre 1975 Stamp period does not count towards 'WEPing'. Thank you for reading. TM
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Old Dec 30th 2016, 5:15 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
It won't affect her payments from the British government, but it will probably affect her US Social Security payments. She is required to notify the Social Security Administration when she starts receiving pension benefits which were paid for with earnings that were not subject to Social Security taxes - i.e. earnings outside the US or exempt earnings in the US.
Pulaski, apologies to you. I have just re-read your post and originally thought you were referring to making voluntary payments.
TM
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Old Dec 30th 2016, 5:58 pm
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Default Re: UK state pension and USA social security

Originally Posted by TiaMaria57 View Post
Also is there anyone reading this that has managed to convince the SSA that Pre 1975 Stamp period does not count towards 'WEPing'. Thank you for reading. TM
I used to do the wages for a company where I worked in the early 70s. The NI stamp contribution was deducted from a persons wages and stuck on their card. It was indeed a flat rate, but it was deducted from wages and that is where the argument that part of the pension is not subject to WEP might fail. It certainly wasn't a voluntary contribution.

You are also not the first to post here that SSA wanted to WEP the whole of a UK State pension regardless of how the contributions were paid on which it was calculated. Unfortunately the other person hasn't returned to say how that was resolved.
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