IncomeTax/NI future merger + pension

[frankie32]

I don't know if anyone's seen the announcement in today's Budget of a 'future' merger of Income Tax and National Insurance, but apparently this is the first step on the way to the proposed flat rate State pension of about £140 a week in the UK. The problem is, one of the standard rules for flat rate State pension schemes, is residency, so that you will have to be resident in the UK, or if you're in Europe, apparently European legislation gets around that requirement, but that doesn't apply outside Europe. Anyway, my question is, has anyone transferred their contributions from the UK to the USA and was it worth it?
Thanks

[peter gold]

Not sure that is right I am not a UK resident and I get deails annually of how my pension will be when I retire and it is paid in the USA

[frankie32]

Yes, I know that's the situation now, and certainly for a few years to come, but it is one of the rules for the new, or should I say proposed, flat rate pension. I was just wondering whether anyone had moved their contributions to Social Security, that's all, under the totalization agreement.
Thanks

[dip your toe]

A large thread on the big expats forum about this very subject. Quite confusing and complicated. I far as I can figure out I need to take out my US pension as early as possible as if I leave it till later when I should recieve more, but will be penalised and a reduction made for recieving a UK pension as well. AS THINGS STAND.

Though, TBH, I'm confused by it all. I suspect a lot of means testing will be introduced in the not too distant future.

[Ray10]

I don't know if anyone's seen the announcement in today's Budget of a 'future' merger of Income Tax and National Insurance, but apparently this is the first step on the way to the proposed flat rate State pension of about £140 a week in the UK. The problem is, one of the standard rules for flat rate State pension schemes, is residency, so that you will have to be resident in the UK, or if you're in Europe, apparently European legislation gets around that requirement, but that doesn't apply outside Europe. Anyway, my question is, has anyone transferred their contributions from the UK to the USA and was it worth it?
Thanks

no such transfer possible ...although there are a few scams that will ..
leave it safe in the Uk

[frankie32]

http://www.ssa.gov/international/Agreement_Pamphlets/uk.html

Please check your accuracy of information before you post. See the above link.

[Susie]

I don't know if anyone's seen the announcement in today's Budget of a 'future' merger of Income Tax and National Insurance, but apparently this is the first step on the way to the proposed flat rate State pension of about £140 a week in the UK. The problem is, one of the standard rules for flat rate State pension schemes, is residency, so that you will have to be resident in the UK, or if you're in Europe, apparently European legislation gets around that requirement, but that doesn't apply outside Europe. Anyway, my question is, has anyone transferred their contributions from the UK to the USA and was it worth it?
Thanks

Good thread and points

I understood that as I have paid full stamps that when I reach pension age I will be entitled to it no matter where I live?? Have you a link to the rules and website?

[Susie]

http://www.ssa.gov/international/Agreement_Pamphlets/uk.html

Please check your accuracy of information before you post. See the above link.

Thank you so much, for posting this link, I have taken a look and will be making some phone calls.


I will sticky the thread and encourage us all to try and get to grips with it

[frankie32]

This was the original article which piqued my interest, because it occurred to me that knowing politicians, if they are to introduce a scheme like this, then I could quite easily foresee them excluding ex-pats from transferring their contributions at some stage in the process to save money (cynic that I am!).
Then I did a bit more searching around and found the second link. From what I've read, Europeans are safe because of existing legislation that prevents the government from stopping them collecting pensions in another European country, but of course, those outside Europe would not be protected.

http://www.independent.co.uk/news/uk/politics/new-flatrate-pension-would-see-payments-raised-by-16340-a-week-2116455.html

http://www.dwp.gov.uk/docs/rev-res-based-pen-schemes.pdf

I was kind of interested to see what other people think, because I'm torn with leaving things as they are and collecting both UK and US pensions (with the attendant set off, of course) and risking it, or just making a transfer here and now and being done with it!!