UK & US Retirement Pensions - alert
Apr 17th 2004, 11:31 pm
#1
Just Joined
Thread Starter
Joined: Apr 2004
Location: Fallbrook, CA
Posts: 17
UK & US Retirement Pensions - alert
Hi,
Just joined the forum to post this alert message - I don't see the topic anywhere so maybe it's new to everyone.
If you immigrated to the US later in life you are probably entitled to a UK pension and (assuming 40 quarters of work in the US) a U.S. Social Security as well. May not be much, but every little helps as the old lady said
My wife just decided to retire after working here for almost 12 years - her Social Security benefits are not much as she was low-paid (nursing) and amount to about $520 per month - scarcely a fortune.
The U.S. SSA in it's infinite wisdom has a clause called the "Windfall Elimination Provision" which is designed to prevent highly paid workers from getting benefits disproportionately from low-paid workers - but it has a very bad side effect for both Federal Employees AND ex-pats getting pensions from abroad.
Basically if you are entitled to a 'foreign' pension based on work for which you did not pay US Social Security taxes, they recalculate your benefits using a different formula. In my wifes case that results in her benefits being reduced to $227 per month
So, check your benefits statements etc., go calculate your retirement benefits on-line (www.ssa.gov) and then factor in your UK pension - it's horrifying.
There is hope - there is a bill before congress (HR 2011 and others) to mitigate this unwanted effect - and one is sponsored by a certain John Kerry (D-MA) - might affect your decisions come November
Hope this helps someone
David
Just joined the forum to post this alert message - I don't see the topic anywhere so maybe it's new to everyone.
If you immigrated to the US later in life you are probably entitled to a UK pension and (assuming 40 quarters of work in the US) a U.S. Social Security as well. May not be much, but every little helps as the old lady said
My wife just decided to retire after working here for almost 12 years - her Social Security benefits are not much as she was low-paid (nursing) and amount to about $520 per month - scarcely a fortune.
The U.S. SSA in it's infinite wisdom has a clause called the "Windfall Elimination Provision" which is designed to prevent highly paid workers from getting benefits disproportionately from low-paid workers - but it has a very bad side effect for both Federal Employees AND ex-pats getting pensions from abroad.
Basically if you are entitled to a 'foreign' pension based on work for which you did not pay US Social Security taxes, they recalculate your benefits using a different formula. In my wifes case that results in her benefits being reduced to $227 per month
So, check your benefits statements etc., go calculate your retirement benefits on-line (www.ssa.gov) and then factor in your UK pension - it's horrifying.
There is hope - there is a bill before congress (HR 2011 and others) to mitigate this unwanted effect - and one is sponsored by a certain John Kerry (D-MA) - might affect your decisions come November
Hope this helps someone
David
Apr 18th 2004, 1:41 am
#2
Sad old Crinkly Member
Joined: Oct 2003
Location: Tallahassee, Florida
Posts: 807
I wonder how this would affect my war pension.
I get this from the UK goverment and due to injuries sustained due to service reasons I get this pension tax free.
I do not even have to list it on my US tax return.
It would be interesting to see if they try to cut my US social due to this pension.
Oh well, we will see in about 20 years
I get this from the UK goverment and due to injuries sustained due to service reasons I get this pension tax free.
I do not even have to list it on my US tax return.
It would be interesting to see if they try to cut my US social due to this pension.
Oh well, we will see in about 20 years
Apr 18th 2004, 5:42 pm
#3
BE Forum Addict
Joined: Mar 2003
Location: Florida
Posts: 1,296
Re: UK & US Retirement Pensions - alert
Originally posted by rynd2it
Hi,
Just joined the forum to post this alert message - I don't see the topic anywhere so maybe it's new to everyone.
If you immigrated to the US later in life you are probably entitled to a UK pension and (assuming 40 quarters of work in the US) a U.S. Social Security as well. May not be much, but every little helps as the old lady said
My wife just decided to retire after working here for almost 12 years - her Social Security benefits are not much as she was low-paid (nursing) and amount to about $520 per month - scarcely a fortune.
The U.S. SSA in it's infinite wisdom has a clause called the "Windfall Elimination Provision" which is designed to prevent highly paid workers from getting benefits disproportionately from low-paid workers - but it has a very bad side effect for both Federal Employees AND ex-pats getting pensions from abroad.
Basically if you are entitled to a 'foreign' pension based on work for which you did not pay US Social Security taxes, they recalculate your benefits using a different formula. In my wifes case that results in her benefits being reduced to $227 per month
So, check your benefits statements etc., go calculate your retirement benefits on-line (www.ssa.gov) and then factor in your UK pension - it's horrifying.
There is hope - there is a bill before congress (HR 2011 and others) to mitigate this unwanted effect - and one is sponsored by a certain John Kerry (D-MA) - might affect your decisions come November
Hope this helps someone
David
Hi,
Just joined the forum to post this alert message - I don't see the topic anywhere so maybe it's new to everyone.
If you immigrated to the US later in life you are probably entitled to a UK pension and (assuming 40 quarters of work in the US) a U.S. Social Security as well. May not be much, but every little helps as the old lady said
My wife just decided to retire after working here for almost 12 years - her Social Security benefits are not much as she was low-paid (nursing) and amount to about $520 per month - scarcely a fortune.
The U.S. SSA in it's infinite wisdom has a clause called the "Windfall Elimination Provision" which is designed to prevent highly paid workers from getting benefits disproportionately from low-paid workers - but it has a very bad side effect for both Federal Employees AND ex-pats getting pensions from abroad.
Basically if you are entitled to a 'foreign' pension based on work for which you did not pay US Social Security taxes, they recalculate your benefits using a different formula. In my wifes case that results in her benefits being reduced to $227 per month
So, check your benefits statements etc., go calculate your retirement benefits on-line (www.ssa.gov) and then factor in your UK pension - it's horrifying.
There is hope - there is a bill before congress (HR 2011 and others) to mitigate this unwanted effect - and one is sponsored by a certain John Kerry (D-MA) - might affect your decisions come November
Hope this helps someone
David
My husband is in the same position. He will get full UK pension and will be able to claim Social security here too (if there is any social security by that time). He also gets a company pension (now) from UK. I used the calculators a while ago, and in his case the windfall Elimination provision will have less of an impact as I understand there is an upper limit on the amount they can take off your social security. I don't think they should be able to take any off at all- after all, the money has been contributed to both countries - you should be entitled to full benefit in both countries.
If Kerry aims to get rid of this unfair clause- just one more reason I hope he gets in...unfortunately I don't have a vote.
If BUllSHit gets back in - he wants to eliminate social security doesn't he? certainly aims to get rid of IRAs and replace them with 'his' retirement plan (with no tax breaks).
Last edited by Taffyles; Apr 18th 2004 at 5:44 pm.
Apr 18th 2004, 10:48 pm
#4
Just Joined
Thread Starter
Joined: Apr 2004
Location: Fallbrook, CA
Posts: 17
Oh well, we will see in about 20 years
I only got 11 years right now
and I can't get much more until I retire. Ah WellDavid
V
