WEP question for Social Security
#16
Re: WEP question for Social Security
When we retire we will both qualify for the full state pension but will probably only have around 10 years of SS contributions - I may have less than 10. I had assumed that at NRD my husband would apply for his SS receiving his full benefit, when the state pension kicks in this would be WEP'd by approx 50%. A couple of years later I would apply for my SS (at my NRD) and receive a spousal benefit amounting to 50% of his WEP'd SS (so 25%). Suprised to hear I may in fact receive the full 50% of his Primary Insurance amount as the spousal benefit is not subject to WEP. If I understand correctly, as a couple, we would be receiving the equivalent of his full Primary Insurance Amount? His 50% of PIA - WEP'd and my 50% of PIA as spousal benefit.
Definitely confusing, as if I continue to work and accrue more than 40 quarters and claim SS on my own earnings record, we would both be WEP'd due to the state pension. I think I need to get the calculator out again ... But as my benefits are going to be less than his, looks as though we will have a few more unexpected pennies in our retirement budget!
Definitely confusing, as if I continue to work and accrue more than 40 quarters and claim SS on my own earnings record, we would both be WEP'd due to the state pension. I think I need to get the calculator out again ... But as my benefits are going to be less than his, looks as though we will have a few more unexpected pennies in our retirement budget!
#17
Re: WEP question for Social Security
#18
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Re: WEP question for Social Security
Hi Everyone,
Can I just confirm that is it ok to have both UK state pension and U.S social security at the same time and would each relevant dept (UK DWP and U.S SS) know that an individual was receiving both pensions? Thanks.
Can I just confirm that is it ok to have both UK state pension and U.S social security at the same time and would each relevant dept (UK DWP and U.S SS) know that an individual was receiving both pensions? Thanks.
#19
Re: WEP question for Social Security
I believe that you have to tell US SS about any foreign pensions you might receive, whether state or private. I think there is declaration on the form that you use to apply. I don’t think the UK cares as there is no impact to your UK state pension. However since I am not at that age yet I will defer to others who have been through the process.
Also be aware that WEP will apply to all foreign pension/retirement income unless it is a result of voluntary NICS or additional voluntary contributions to a company scheme, usually from the old AVC and FSAVC schemes that you could contribute to back in the day. The maximum WEP is calculated from your total WEP’able income not on each source so at least you will never go above the maximum which this year is $463/month regardless of how many sources you may have.
Also be aware that WEP will apply to all foreign pension/retirement income unless it is a result of voluntary NICS or additional voluntary contributions to a company scheme, usually from the old AVC and FSAVC schemes that you could contribute to back in the day. The maximum WEP is calculated from your total WEP’able income not on each source so at least you will never go above the maximum which this year is $463/month regardless of how many sources you may have.
#20
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Re: WEP question for Social Security
Yes it is okay to have both same time. It makes no difference to the OAP if you are receiving SS or not. In June I spoke with someone at the FBU in the US Embassy about claiming SS and she told me to have my OAP record to hand when being interviewed to claim it. I looked up my record on line and DWP clearly shows the number of years that I made voluntary NI contributions, which are not counted in the SS WEP calculation.
#21
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Re: WEP question for Social Security
Thank you Glasgow Girl,I do remember having to give some paperwork to the U.S SS dept reg my UK state pension amounts,but dont recall having to tell the DWP anything as I wasnt yet receiving my SS.....Do you think the DWP have been told by the SS or should I tell the DWP ? Thanks.
#22
Re: WEP question for Social Security
Thank you Glasgow Girl,I do remember having to give some paperwork to the U.S SS dept reg my UK state pension amounts,but dont recall having to tell the DWP anything as I wasnt yet receiving my SS.....Do you think the DWP have been told by the SS or should I tell the DWP ? Thanks.
#23
Re: WEP question for Social Security
Thank you Glasgow Girl,I do remember having to give some paperwork to the U.S SS dept reg my UK state pension amounts,but dont recall having to tell the DWP anything as I wasnt yet receiving my SS.....Do you think the DWP have been told by the SS or should I tell the DWP ? Thanks.
#24
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Re: WEP question for Social Security
OK,thank you Ian and Glasgow Girl
#25
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Re: WEP question for Social Security
quick question for Ian if I may.....my UK pension is reduced because I spent most of my time in the U.S,Ive been told that I can now apply(Im in the UK now) for UK pension credit,which is a top up to my reduced state pension,do I still need to mention the SS ? Thank you Ian
#26
Re: WEP question for Social Security
quick question for Ian if I may.....my UK pension is reduced because I spent most of my time in the U.S,Ive been told that I can now apply(Im in the UK now) for UK pension credit,which is a top up to my reduced state pension,do I still need to mention the SS ? Thank you Ian
If you have 30 years of credits in SS you are not subject to WEP, so it's immaterial. There is a link between UK and SS records. As an example you can file a claim for UK State pension at a US SS office. I can't recall anyone on BE saying they were given UK Pension credit after claiming SS and being subject to WEP, therefore no information of what SS might do in those circumstances. If you have been subject to WEP and are in receipt of UK Pension Credit, if it were me I would inform SS, being safe rather than sorry if SS were to say they had overpaid and wanted an amount back if it came to light.
As to how SS might effect a claim for UK Pension credit I have no idea at all. If they ask for details of other income you would need to mention your SS.
ETA: I've just found this online, so yes SS needs to be declared if you claim pension credit.
- If you're single: If your weekly income (including pension) is below £173.75, pension credit will top you up to this amount.
- If you're in a couple: If your joint weekly income is below £265.20, you'll get a top up to your combined income to this amount.
Last edited by lansbury; Aug 17th 2020 at 8:19 pm.
#27
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Re: WEP question for Social Security
OK,Thanks Ian,appreciate it.
#28
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Re: WEP question for Social Security
quick question for Ian if I may.....my UK pension is reduced because I spent most of my time in the U.S,Ive been told that I can now apply(Im in the UK now) for UK pension credit,which is a top up to my reduced state pension,do I still need to mention the SS ? Thank you Ian
As you can see from the link below, all pensions are used to calculate if one qualifies for pension credit plus how much savings one has.
https://www.gov.uk/pension-credit/eligibility
#29
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Re: WEP question for Social Security
For certain you have to report to HMRC and pay applicable taxes on your SS
Durham Lad are you sure about this?
Durham Lad are you sure about this?
#30
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Re: WEP question for Social Security