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WEP question for Social Security

WEP question for Social Security

Old Aug 18th 2020, 7:28 pm
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Default Re: WEP question for Social Security

I just applied for Medicare - not Social Security - and in the 'phone interview I had I was asked whether I was claiming UK state pension or would be entitled to it in the future. This despite the fact that the interviewer acknowledged that as I had a 30+ year SS record I wasn't subject to WEP anyway.
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Old Aug 18th 2020, 7:49 pm
  #32  
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Default Re: WEP question for Social Security

Originally Posted by durham_lad View Post
If you are still resident in the UK which I assume you are since you are asking about UK pension credit then the tax treaty between the countries says that only the UK taxes SS. I am in a similar situation.
OK,thank you....so,the UK will tax my SS ....by what % ? thank you
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Old Aug 18th 2020, 8:26 pm
  #33  
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Default Re: WEP question for Social Security

Originally Posted by kathy_FROMFLORIDA View Post
OK,thank you....so,the UK will tax my SS ....by what % ? thank you
100% of SS will be taxable. It’s not like the USA where the most you can be taxed on SS is 85%.

The UK tax free allowance is £12,500 I think. If your only income was £10,000 SS and OAP was £2,500 then the tax would be zero.
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Old Aug 18th 2020, 11:55 pm
  #34  
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Default Re: WEP question for Social Security

Thank you Durham Lad.appreciate it.Thank you.
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Old Aug 26th 2020, 7:47 am
  #35  
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Default Re: WEP question for Social Security

Originally Posted by Giantaxe View Post
I just applied for Medicare - not Social Security - and in the 'phone interview I had I was asked whether I was claiming UK state pension or would be entitled to it in the future. This despite the fact that the interviewer acknowledged that as I had a 30+ year SS record I wasn't subject to WEP anyway.
So what was his reason for asking, do you think? Could medicare be somehow different from SS? I'm going to be in the same position 'soon' ... getting some UK state pension and applying for Medicare, and not being subject to WEP thanks to over 30 years of SS credits.
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Old Aug 26th 2020, 9:01 am
  #36  
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Default Re: WEP question for Social Security

Originally Posted by Steerpike View Post
So what was his reason for asking, do you think? Could medicare be somehow different from SS? I'm going to be in the same position 'soon' ... getting some UK state pension and applying for Medicare, and not being subject to WEP thanks to over 30 years of SS credits.
I was also interviewed for Medicare Part A this year and I think it must simply be a list of questions they have to ask. They do insist on seeing my US passport and Naturalization certificate in person, copies not acceptable.
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Old Aug 26th 2020, 5:22 pm
  #37  
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Default Re: WEP question for Social Security

I'll tag in here for a bit as I've recently, after some excellent advice in this forum, started similar research re SS amounts after I return to the UK in a few years. Looking at my contributions I'll probably be at the minimum for SS. Taking that into consideration plus the meager UK private pensions I have and UK state pension I worked out (ballpark) I'd get around $130 per week after WEP. I guess from the above this $130 would then be subject to Tax by HMRC as well?

Taking all the deductions and reductions on board, adding in the annual cost of an accountant who is fully conversant with the tax treaty and can complete returns for both the UK and the US so that I don't get clobbered more than necessary, the residual SS payment would barely cover per week a tank of gas in the UK. OK, better than nothing but, not being a multi-homed, hugely pensioned kind of retiree but a "regular guy" in an average job it starts to not seem worth claiming SS. Then there's the price placed on the hassle factor of sorting all this out each year/associated paperwork. Convince me otherwise folks.
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Old Aug 26th 2020, 5:28 pm
  #38  
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Default Re: WEP question for Social Security

Originally Posted by durham_lad View Post
I was also interviewed for Medicare Part A this year and I think it must simply be a list of questions they have to ask. They do insist on seeing my US passport and Naturalization certificate in person, copies not acceptable.
Yes, I think it's on their checklist to get possible WEPers on file. He recognized through my accent that I wasn't a natural born citizen and did first ask for my naturalization certificate. I had to produce that and my UK birth certificate for my Medicare application. The local SS office is closed to the public due to covid, as I sent them by registered mail. I was assured they would be returned that way, but of course they came back by normal mail. Not impressed!
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Old Aug 26th 2020, 7:19 pm
  #39  
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Default Re: WEP question for Social Security

Originally Posted by Giantaxe View Post
Yes, I think it's on their checklist to get possible WEPers on file. He recognized through my accent that I wasn't a natural born citizen and did first ask for my naturalization certificate. I had to produce that and my UK birth certificate for my Medicare application. The local SS office is closed to the public due to covid, as I sent them by registered mail. I was assured they would be returned that way, but of course they came back by normal mail. Not impressed!
Thanks for that. They did say that we could send them in sometime over the next 12 months. Since we won’t be applying for SS until late next year and we want to spend a few days in London and visit relatives in Surrey we are hoping things open up and we can actually go into the Embassy in person. Otherwise we’ll have to send the documents in by registered mail.
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Old Jan 17th 2021, 8:45 pm
  #40  
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Default Re: WEP question for Social Security

We seem to have a break on WEP for social security so here we go ! I recently read an old post from GlasgowGirl who wrote that WEP does not apply to spousal benefits ?
My spouse and I married late in life ... Me approaching sixty and spouse fourteen years older.
I have 24 years National Insurance credits from the U.K. and in the process of adding the 11 years to make the full pension. I will defer claiming the U.K. pension till as late as possible, Think that is 70 to maximise credits.
I have only a handful of years towards US social security and will not make the 10 years required by myself.... Spouse has full US social security and military pensions.
If I become a surviving spouse, due to our age difference, I assumed that I would get clobbered by WEP on fifty percent surviving spouse social security payments ... but possibly not ?
Obviously I know only too well that WEP will kick in when I claim my UK pension at age 70..... that is why I will leave the U.K. claim till as late as possible.
Am I also correctly reading on this forum that my 11 years voluntary U.K. payments will NOT be WEP clobbered .... if these two facts ARE correct, Then possibly not as bad as I had feared..... not good, but not as bad as I feared !!
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Old Jan 17th 2021, 8:59 pm
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Default Re: WEP question for Social Security

Originally Posted by BennyBall View Post
We seem to have a break on WEP for social security so here we go ! I recently read an old post from GlasgowGirl who wrote that WEP does not apply to spousal benefits ?
My spouse and I married late in life ... Me approaching sixty and spouse fourteen years older.
I have 24 years National Insurance credits from the U.K. and in the process of adding the 11 years to make the full pension. I will defer claiming the U.K. pension till as late as possible, Think that is 70 to maximise credits.
I have only a handful of years towards US social security and will not make the 10 years required by myself.... Spouse has full US social security and military pensions.
If I become a surviving spouse, due to our age difference, I assumed that I would get clobbered by WEP on fifty percent surviving spouse social security payments ... but possibly not ?
Obviously I know only too well that WEP will kick in when I claim my UK pension at age 70..... that is why I will leave the U.K. claim till as late as possible.
Am I also correctly reading on this forum that my 11 years voluntary U.K. payments will NOT be WEP clobbered .... if these two facts ARE correct, Then possibly not as bad as I had feared..... not good, but not as bad as I feared !!
correct I believe.

WEP is applied to the person who applied for SS. Spousal benefits are not subject to more WEP based on the spouse’s pensions
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Old Jan 17th 2021, 9:11 pm
  #42  
 
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Default Re: WEP question for Social Security

I can vouch that spousal benefits are not subject to WEP.
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Old Jan 17th 2021, 9:35 pm
  #43  
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Default Re: WEP question for Social Security

If you will only receive benefits based upon your spouse’s record, and it sounds like that is the case then you have escaped WEP altogether. Congratulations on that one! Therefore don't delay your UK pension for WEP reasons although you may want to for other reasons.

For others, the portion of your UK state pension that is due to voluntary NI’s will not be WEP’d, but I believe you have to point that out when you apply. The SS office won't leave it out of the calculation unless you inform them of the voluntary contributions.
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Old Jan 17th 2021, 10:02 pm
  #44  
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Default Re: WEP question for Social Security

Originally Posted by Glasgow Girl View Post
If you will only receive benefits based upon your spouse’s record, and it sounds like that is the case then you have escaped WEP altogether. Congratulations on that one! Therefore don't delay your UK pension for WEP reasons although you may want to for other reasons.

For others, the portion of your UK state pension that is due to voluntary NI’s will not be WEP’d, but I believe you have to point that out when you apply. The SS office won't leave it out of the calculation unless you inform them of the voluntary contributions.
how do you split it out. I think I may have taken a screenshot of the forecast UK state pension before I made all the voluntary contributions, is it a straight calculation based on years or some more complicated formula? If it is based on years how will they treat the years I was commuting and paying NI (non voluntarily) and SS at the same time?

Last edited by tht; Jan 17th 2021 at 11:05 pm.
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Old Jan 17th 2021, 10:50 pm
  #45  
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Default Re: WEP question for Social Security

Glasgow Girl, so very glad that I found your old post. It will be a game changer as far as when to claim my U.K. pension.
Great information to have in the hip pocket. I learn something new each and every time I Login.
Thanks a million.
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