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British expats send more funds to UK
for a better UK pension.
This week, British Pensions in
Australia Inc (BPiA) has sent £15000 ($38000) to the London lawyers managing
the legal case for South Africa based Annette Carson. BPiA
has now sent £20000 ($50000) to the UK in recent
months, to support this courageous lady in her legal fight,
on behalf of many UK expatriate pensioners.
BPiA a fast growing national volunteer association, of
mainly British expats is represented throughout Australia.
Over 2600 have joined its ranks in 17 months. BPiA is affiliated
with similar associations in Canada, South Africa and NZ.
BPiA’s mission is to achieve an amendment to the
UK’s State age pension legislation. These pension
laws discriminate against some UK expat pensioners by failing
to regularly increase the UK State pension by the rate
of inflation. In strange contrast the UK pays inflation
adjustments to its expats in some 50 countries, like the
EU nations, USA, Turkey, Cyprus, Barbados, the Philippines
and Israel. Australian Federal Ministers have claimed this
treatment of us British expats here is immoral.
BPiA’s current primary objective
is to provide financial and moral support for Annette
Carson. Her February, House
of Lords test case involves a legal battle being waged
on behalf of UK expat pensioners world-wide. Funding for
this Carson case is being provided, out of pocket, by South
Africa, Canada, NZ and Australia based UK expats.
The case will be heard by the
Lords’ judicial committee
in London to have this wilful, shameful UK legislation
overturned. Probably, eventually, the case may have to
be taken to the European Court of Human Rights Strasbourg
at extra cost.
When successful the resulting financial benefit should
flow on to nearly 500,000 British expatriate pensioners
including, 230,000 in Australia, about 140,000 in Canada
and 36,000+ in both South Africa and NZ.
In Australia most UK pensioners who also receive an Australian
age pension will keep at least 60% of any extra pension
income they receive from the UK. Only 40% of this extra
income may be deducted from their Australian pension. The
UK State pension is not means tested.
For UK pensioners in Australia
or those approaching pension age in the next few years,
BPiA can assist them better
understand the UK’s pension rules to their benefit.
Information we provide should help them financially. BPiA
can usually guide those who may not have made quite enough
National Insurance contributions to achieve the UK pension,
understand how to make up any shortfall at a reasonable
cost.
Please seriously consider joining BPiA and its worthy
campaign to benefit yourself and others, many of whom could
do with the extra cash to make life more agreeable.
If you are one of the many UK
pensioners living in NSW or one of those approaching
pension age in the next few
years, BPiA will, most probably to your benefit, help you
to better understand, the UK’s pension rules.
Contact British Pensions in Australia Inc, for more details
via, PO Box 524, Campbelltown, NSW 2560; or visit the website
www.bpia.org.au or phone BPiA’s
Chairman, Jim Tilley on 1300 308 353. [email protected]
Jim Tilley, Hon. Chairman, BPiA Inc. January 21 2005
Frequently asked questions
1 Q-What is the minimum contributions period to qualify
for UK State Pension?
A-- 10 year for women, 11, men, National Insurance contributions
commence at age 16.
2 Q- What if I have only made National Insurance contributions
for 7 years?
A—One can make voluntary contributions from Australia
to achieve the requisite 10 or 11 years, costing approximately £350/year
if not working, or £105 /year if working.
3 Q- How do I find out about my UK pension contributions
record?
A—Call the UK’s DWP Newcastle upon Tyne, BPiA
will provide you with the necessary UK phone numbers, when
one has joined BPiA for a modest membership fee.
4 Q- What is BPiA and why should I subscribe?
A—BPiA is a not-for-profit association of UK expat
pensioners, run entirely by volunteers. BPiA’s objective
is to force the UK government, to change its pension policy,
to regularly inflation adjust our UK pensions. BPiA’s
current strategy includes helping fund South Africa’s
Annette Carson legal case to be heard in the Lords, in
February 2005.
5. Q- Who is Annette Carson?
A—Annette Carson is a Cape Town based expat pensioner
who was chosen by the South African British pensioners’ association
to represent expat pensioners who suffer the indignity
of a frozen UK State pension. We have been asked to help
fund the case along with Canada’s and NZ’s
British pensioner associations.
6. Q- What is a frozen pension?
A—The fact that our UK pension never increases after
we commence receiving it in Australia, our pension is thus
deemed as “frozen”. This applies also to UK
pensions received in most of the Commonwealth countries
like Canada, South Africa and NZ.
7. Q - Is the UK pension
inflation adjusted in many countries?
A -Yes about 50 countries mainly the EEA, USA,
Israel, Turkey, Yugoslavia, Bosnia, and some minor Commonwealth
nations like Cyprus Barbados Mauritius, Jamaica.
8. Q-What are the chances of winning this legal challenge?
A--It is always a lottery taking matters like this to law
and the case will probably have to be determined eventually
in a European Court. In Europe every EU nation inflation
uprates their expats’ pensions, the UK does not
and is out of step with convention. We believe therefore
we have a good chance of winning in Europe. Australia
inflation adjusts its expats’ pensions including
those in the UK.
9. Q- Why won’t the UK uprate
our pensions?
A—The government claims it cannot afford the annual £400
million it would cost them. However the UK’s National
insurance account is £30 billion in credit, £20
billion above the required £10 billion Government’s
actuary’s prudential balance.
10. Q- Is the UK pension means tested like the Aussie one?
A—No; anyone who has paid into the scheme receives
the pension. There is a minimum income guarantee component
now available in the UK, it is means tested but not available
overseas to expats.
11 Q- I also get the Aussie pension
so why should I be interested in BPiA and receiving more
from the UK; any
extra $’s from the UK will come off my Aussie pension?
A—Not so, every additional $100 received from the
UK will result in only $40 being deducted from your Aussie
pension. You will be $60 better off. Centrelink have provided
BPiA with a letter confirming that.
12. Q-My wife is Australian but I hear I can get a UK
pension supplement for her?
A—so long as your wife is dependent on you, you will
get a supplement pension of 60% of the level you receive,
irrespective of her nationality or age.
13. Q-What constitutes dependency?
A—A wife is dependent so long as she is not earning
a wage from working or a UK pension in her own right. However
you have to apply for the supplement to Newcastle and be
prepared to complete forms and send them the likes of marriage
certificates.
14. Q- Is it right that if I return to the UK on holiday
my pension will be increased?
A—Correct, 4-6 weeks before departure you need to
phone Newcastle to advise them or your travel plans and
a phone contact in the UK. This rule also applies to Europe
and all 50 countries in which UK pensions are indexed except
the USA and Bermuda.
15.. Q-Is there is a tax benefit relating to the UK pension
and the Australian taxable
income
A--Correct. 8% of your UK pensions income can be deducted from your Australian
taxable income when completing your annual tax return. If this benefit has
not been taken in previous years one can “catch-up” for up to 5
years.
16. Q- I receive a UK forces pension, so am I entitled
to a UK State pension too?
A Certainly; so long as you have paid into the UK’s
mandatory State system for the minimum requisite 11 years
(men) 10- years (women).
17. Q -I am 72 and receive
a UK forces pension having been in the RAF for 20 years,
how do I apply for any other pensions to which I may be entitled?
A—You will need to contact the UK, Newcastle. BPiA can supply you with
all the necessary information required, together with the UK phone number.
18. Q - I am over 65 and
maybe missed out by a couple of years in making the requisite
qualifying 11 year contributions, what can be done to recover the contribution
made?
A—If one is less than 5 years over 65 it is possible to offer to pay
any shortfall by way of voluntary contributions, we have an example of this
being achieved. If one is above 70 the chances of success are less favourable
but worth a try. One should claim that the UK denied you the opportunity to
pay VC’s, by failing to provide the requisite information.
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