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UK state pension and USA social security

UK state pension and USA social security

Old Mar 13th 2017, 5:22 pm
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Default Re: UK state pension and USA social security

Originally Posted by findthespot View Post
Gee Lansbury, you need to chill mate.

I did not tell anybody to defraud Uncle Sam. I did not know the answer to the question re when one would need to inform the SSA re the commencement of receipt of a foreign pension.

You then answered the query. Thank you.

I wish you well in your quest to find some life on Mars.
Lansbury is correct. There are times and places for sarcasm and wise-cracks, .... discussions about interactions with the Federal Government is not one of them.
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Old Mar 13th 2017, 7:38 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
Lansbury is correct. There are times and places for sarcasm and wise-cracks, .... discussions about interactions with the Federal Government is not one of them.
Cheers. Nice tongue in cheek comment.
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Old Mar 14th 2017, 6:05 pm
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
As has been said here several times. WEP only kicks in when you are in receipt of both US SS and UK State pension, if all the other requirements for WEP apply.

Question B isn't clear. Are you suggesting taking your UK pension and then stopping receipt of it.
Thanks for clarity answer.
Re Question B, yes my understanding is that UK Govt allows you to elect to suspend taking it at some point after you have started receiving it . During suspended period it increases by 1% for every 9 weeks you defer -for those reaching state pension age after April 2016. This works out as just under 5.8% for every full year.
For those reaching state pension age before April 2016 it is a very generous 1% increase for every 5 weeks you defer. This works out as 10.4% for every full year you defer claiming.
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Old Mar 14th 2017, 6:31 pm
  #1384  
 
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Default Re: UK state pension and USA social security

Originally Posted by adeelmbridgeUK View Post
Thanks for clarity answer.
Re Question B, yes my understanding is that UK Govt allows you to elect to suspend taking it at some point after you have started receiving it . During suspended period it increases by 1% for every 9 weeks you defer -for those reaching state pension age after April 2016. This works out as just under 5.8% for every full year.
For those reaching state pension age before April 2016 it is a very generous 1% increase for every 5 weeks you defer. This works out as 10.4% for every full year you defer claiming.
I don't recall anyone posting on BE that they have done that, so there is no first hand knowledge with which to answer. Unless someone pops up and can answer.

As an assumption as WEP can be calculated after you receive SS if you then start taking the UK pension one would hope that the reverse might apply, but who knows. I would suggest a call to the SSA office that handles overseas claimants, general inquiries 410-965-2356, call during business hours eastern time.
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Old Mar 14th 2017, 6:37 pm
  #1385  
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Default Re: UK state pension and USA social security

I tried to catch up on all the posts on this thread and this is my first post so here goes...

UK born and have US citizenship turning 65 this year. I live and still work in the US. I am eligible for a UK state pension (have 25 qualifying years of which 6 years I paid voluntary class 2 contribs). I have 28 years of 'substantial earnings' as per US WEP snd plan to take SS next year. I have deferred claiming my UK state pension but will do so later this year. Am looking at the UK state pension claim form now - certainly asks for a lot of information! Part 6 of the form asks "are you getting any social security benefits from another country". As I am not claiming SS, I assume I can say 'no"?

Part 7 of the form asks "did you pay into the social security of the country where you lived and worked." I assume I say "yes" and provide my SS number as indicated. Do you know if this information is reported to the US SSA?

As I have 27 and not 30 years of earnings in the US I checked the WEP chart. Can you clarify what the WEP % means - for me it is 80% but of what?

Thanks for your help in untangling these questions for me!
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Old Mar 14th 2017, 7:50 pm
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Default Re: UK state pension and USA social security

Originally Posted by GMT View Post

Part 7 of the form asks "did you pay into the social security of the country where you lived and worked." I assume I say "yes" and provide my SS number as indicated. Do you know if this information is reported to the US SSA?
Yes they do exchange information. You can claim UK State pension at a SS office in the US, and they do inform each other when a person in receipt of a pension dies. It would probably be prudent to assume all information is exchanged.


As I have 27 and not 30 years of earnings in the US I checked the WEP chart. Can you clarify what the WEP % means - for me it is 80% but of what?

Thanks for your help in untangling these questions for me!
SS use a formula to work it all out. They work out using their formula your "substantial earnings". A person not subject to WEP gets 90% of that. WEP reduces that further by 5% per year from 29 - 20 years of contributions.
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Old Mar 14th 2017, 9:53 pm
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Default Re: UK state pension and USA social security

Thank you for the quick response. Just making sure I understand correctly - as I have 27 years of US earnings that meet the substantial earnings requirements, the WEP policy means I should expect a 20% reduction of my estimated SS benefits?
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Old Mar 14th 2017, 10:22 pm
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Default Re: UK state pension and USA social security

Originally Posted by GMT View Post
Thank you for the quick response. Just making sure I understand correctly - as I have 27 years of US earnings that meet the substantial earnings requirements, the WEP policy means I should expect a 20% reduction of my estimated SS benefits?
It isn't quite like that as the WEP only applies to the major part of how the benefit is calculated. If you are a high salary earner then it is not all reduced.

The basic benefit will be 15% less then you would have got it WEP didn't apply. 5% less for each year less then 30 years. There is an online WEP calculator on the SSA web site. https://www.ssa.gov/planners/retire/anyPiaWepjs04.html
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Old Mar 30th 2017, 6:58 pm
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Default Re: UK state pension and USA social security

I currently receive both a U.K. state pension and USA social security. My USA benefits are correctly reduced by my U.K. benefits.
I received my "About the General Increase in Benefits" letter from the U.K. today. Do I have to provide this info to SSA, or will they already know about it? Seems like I shouldn't have to make a special trip to the SSA office if every expat in America who also gets US benefits is getting the same percentage bump.
What are the rules on this?
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Old Mar 30th 2017, 7:06 pm
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Default Re: UK state pension and USA social security

I don't inform SS when I get a COL increase in UK State pension, or a decrease via a currency rate drop for that matter. Our understanding is WEP is only calculated once and subsequent pension or currency changes are not taken into account.
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Old Mar 30th 2017, 7:38 pm
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Default Re: UK state pension and USA social security

There was a thread here quite recently which included a reply from the SSA, via a congressman, confirming that WEP is not re-calculated when overseas pensions increase. I haven't got time right now but a search under WEP should find it.

Last edited by MidAtlantic; Mar 30th 2017 at 7:47 pm.
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Old Mar 31st 2017, 9:10 pm
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Default Re: UK state pension and USA social security

Originally Posted by MidAtlantic View Post
There was a thread here quite recently which included a reply from the SSA, via a congressman, confirming that WEP is not re-calculated when overseas pensions increase. I haven't got time right now but a search under WEP should find it.
Thank you for your reply. I found the thread you were thinking of and have now printed a copy of the Congressman's letter. That was VERY helpful.
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Old Sep 11th 2017, 11:48 pm
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Default Re: UK state pension and USA social security

Dual UK & US citizenship and living in the US. 32 eligible years for UK state pension in 2018 & 19 years (some years very good, some not so) for US SS that can start at 66 years in 2019.
I suspect that I will be wacked with WEP here in the US.

Is there any good reason to delay taking the UK or US pension (other than increase in the amount for accepting to defer), or just take them both when eligible at 65 UK & 66 US. I am also currently getting a small UK gov works pension.

Any suggestions would be gratefully received.
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Old Sep 12th 2017, 5:53 am
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Default Re: UK state pension and USA social security

Originally Posted by ferdy555 View Post
Dual UK & US citizenship and living in the US. 32 eligible years for UK state pension in 2018 & 19 years (some years very good, some not so) for US SS that can start at 66 years in 2019.
I suspect that I will be wacked with WEP here in the US.

Is there any good reason to delay taking the UK or US pension (other than increase in the amount for accepting to defer), or just take them both when eligible at 65 UK & 66 US. I am also currently getting a small UK gov works pension.

Any suggestions would be gratefully received.
Other than getting a bigger pension by deferring I can't see any other advantage in doing so.
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Old Sep 12th 2017, 1:06 pm
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Default Re: UK state pension and USA social security

Depends on your situation. Will you still be working or will you be retiring, do you need your pensions now? Usually the financial advice is to take your US SS pension as soon as possible, if you are still working that would be at full retirement age as before that your pension is reduced $1 for every $2 you earn.

If you receive any pension from earnings not subject to US SS withholding it will trigger WEP on your US SS, although I'm not sure about your UK gov works pension, I don't see any reason why it would be any different.

If you defer your UK pension(s) your US SS will not be reduced by WEP until you such time as you start taking any of you UK pensions.

If you will still be working, and your UK pension(s) are in deferral, you can collect all of your US SS pension without WEP. I currently do this, but when I retire and collect my other pensions my US SS will be reduced by $400.
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