The single-tier pension – does it affect you?

The UK government released the long awaited White Paper ‘The single-tier pension – a simple foundation for saving’ on 14 January 2013. It sets out proposals to simplify the UK state pension system. A draft bill will be published in the days following.

The document is 107 pages long – key highlights follow for those who expect to reach state pension age on or after 6 April 2017. The proposals will NOT affect those already receiving their state pension, or those who expect to reach state pension age before 6 April 2017.

To receive the full weekly rate of the single-tier pension, an individual will need 35 qualifying years of National Insurance (NI) contributions or credits. A pro-rata pension will be paid where the minimum qualifying period is met: 7-10 years of contributions, increasing during the transition period.

The full rate of pension is expected to be about £144 per week in today’s terms (2012/2013), which puts it just above the current full pension of £107.45, plus full pension credit of £35.25, for a total of £142.70. (The pension credit is not payable abroad, so the full basic pension of £107.45 is the maximum for pensioners reaching pension age outside the UK in 2013.)

The single-tier pension will be based solely on an individual’s own NI records – it will not be possible to derive, or inherit, a single-tier pension from a spouse or civil partner. However, transitional rules will apply to recognize NI records under the current system, providing a derived (Category B) pension for some.

Pension ages are already being raised to reach 66 by 2020 for men and women. It is proposed to increase the pension age further to 67, to be phased in between 2026 and 2028.

The single-tier pension will NOT be uprated for those pensioners living in countries with which the UK does not have an appropriate bilateral agreement. Pensions in Canada will remain frozen.

Bernard Jackson, BC President,Canadian Alliance of British Pensioners.

This non-profit organization exists to gain pension parity for all UK pensioners world-wide. Join us in the fight to “unfreeze” pensions. Only $20 per family in Canada. Contact us NOW!

www.ukpensions.ca cabpbc@telus.net Phone: 604-683-3445 or toll free 1-800-760-6633

Q&A – Financial Secretary, HM Treasury (link)
Q&A – Parliamentary Under Secretary of State (Welfare Reform), Work and Pensions (link)

Please find below Tony Bockman’s letter to HM The Queen. We would like to see as many of our members as possible send their personal letters to HM The Queen in support of Tony’s letter.  We have added below a proposed draft letter to assist individual letter writers.  Many thanks to you all.

23 March 2012

Her Majesty The Queen
Buckingham Palace
London SW1A 1AA
ENGLAND

Madam:

As Chairman of the International Consortium of British Pensioners may I offer you our loyal and heartiest greetings on the occasion of Your Majesty’s Diamond Jubilee.

As I am sure you are aware many of your loyal subjects who reside abroad have their Basic State Pension frozen by Your Majesty’s Government. Many of these individuals, now over the age of 85 years, fought for Crown and country when your father was on the throne so that today’s citizens could enjoy the freedom that they now do. Many of the pensioners affected are Commonwealth citizens who came to the United Kingdom’s aid in its time of need. You will doubtless recall that in December 2010 we provided you a bound copy of our book, “Broken Faith”, which records the history of 107 such pensioners who fought for their country both during and after the Second World War.

Your Majesty, whilst not all of the more than half a million pensioners affected are service veterans, they are all people who contributed to the life and health of Great Britain during their working years, just like the other half million plus living overseas whose pensions are not frozen. Now, in their old age, they find that they are abandoned solely because of where they have decided to live in their retirement years. You may be surprised to learn that more than ninety five percent of those whose pensions are frozen live in Commonwealth countries. Surely you would agree that such a disparate policy hardly fits into Great Britain’s reputation for equality and fairness for all, a policy which is so often trumpeted by Your Majesty’s Government. Nor does it meet the intent of the the CHOGM declarations of Singapore 1971 and Harare 1991which called for all Commonwealth nations to, “… use all our efforts to foster equality and dignity everywhere”.

On behalf of the International Consortium of British Pensioners, we pray that during this year of great celebration of Your Majesty’s Diamond Jubilee, you will request your Government to provide pension parity for all British Pensioners living overseas in their retirement years, regardless of where they have chosen to live.

I have the honour to be, Madam,

Your Majesty’s humble and obedient servant.
Anthony Bockman
Chairman, International Consortium of British Pensioners

Proposed letter to Her Majesty the Queen from CABP members

Your Majesty I am writing to you on the occasion of your Diamond Jubilee to draw your attention to the plight of 548,000 UK expat pensioners around the world, whose Basic State Pension is frozen for no better reason than where they chose to live, the majority of these countries being Commonwealth countries. Many of these pensioners fought in the last war on behalf of your father King George VI and the Country. Many of these individuals now only receive some 25% of the current UK pension and are living in poverty. The Country seems to have forgotten the debt that is owed to these veterans. May I petition your Majesty to ask your Government to provide Pension Parity to all on the occasion of your Diamond Jubilee as a mark of respect for their contribution to the Country in the past.

[Whatever you write should also be copied to the present MP in your old constituency in the UK.]

Take a look at David Brook’s Life Reports in the New York Times.

This is a members only page and is not yet activated.