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MikeK - 2013-05-06

Overseas UK pensions 'blocked for spouses'
http://www.bbc.co.uk/news/uk-22423878

This is the clearest statement so far on this confusing matter, although there could be loop holes such as what if 35 years worth of contributions were paid on behalf of a spouse whether or not the couple return to UK

The government is planning to stop giving people who live abroad a British state pension allowance based solely on the employment record of their spouse.

Pensions Minister Steve Webb said some of those claiming a married person's allowance had never visited Britain.

Some 220,000 overseas residents receive such payments - up from 190,000 a decade ago - at a cost of £410m a year.

The measure will be part of an overhaul of the state pension, to be included in the Queen's Speech on Wednesday.

The Pensions Bill will introduce a new flat rate pension based on individual contributions during a person's working life.

But current rules allow spouses to claim a "married person's allowance" based on their husband or wife's history of National Insurance contributions.

this was because a spouse could be financially dependent on UK husband/wife in old age

While increasingly rare in Britain, the practice has become a popular option for people who live overseas and who are married to British citizens.

And why not !!

Mr Webb said that sometimes these allowances are claimed by people who never set foot in this country, and that this was unfair and unsustainable.

New state pension details

Begins April 2016

Worth £144 a week at current prices

Flat rate

35 years of National Insurance contributions needed for full amount

Used to be 30 years...

Not means tested

He told the Daily Torygraph: "Most people would think, you pay National Insurance, you get a pension. But folk who have never been here but happen to be married to someone who has are getting pensions.

"Say you are an American man and you marry a British woman, you can claim, if she has a full record of contributions, a pension of £3,500 a year for your entire retirement having never paid a penny in National Insurance."

But what if she pays a full 35 years worth of contributions for her husband? Does he then become eligible?

"Most people would think that is not what National Insurance is for."

Most people don't understand F.A. about pension stuff

Once the pensions bill becomes law, any new claims from 2016 would be prevented.

But British pensioners and their families who currently live overseas and make such claims would not be affected.

So the example quoted by the "Tory Tw@t" stays in place costing £410m plus a year

The government's overhaul of the state pension system will see a single-tier pension - of £144 a week at today's prices - being paid to every qualifying new pensioner from April 2016 at the earliest.

Unless the Tories stuff it up...

While many people will gain as a result of the changes, some who currently pay in to a second state pension - which is being abolished - will lose out.

This statement refers to SERPS which was UK "top Up" extra pension contributions

http://www.bbc.co.uk/news/uk-22423878

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