Fact or Fiction
With the compliments of British Age Pensioner Alliance

There is a lot of misunderstanding about frozen pensions among Ministers and other MPs. Here we expose the fictions and correct them with the facts.

Fiction  Fact
It would cost an awful lot of money to unfreeze the frozen pensions.   Most recent figure is 400 million annually, which is less than 1% of the total annual outlay for pensions.
     
Pensions are paid by the government out of taxpayers' money.   Pensions are paid by the National Insurance Fund out of contributions to the fund; it is our money.
See National Insurance Fund
     
You knew about pension freezing before you emigrated.   Nobody told us. A few found out "on the gangplank" after they had committed to a decision to emigrate.
     
Australian residents have their pension frozen because Australia terminated the reciprocal agreement.   Australia terminated the reciprocal agreement because Australian residents already had their pensions frozen, and Britain refused to negotiate.
     
There is no fund. Benefits are paid out of current contributions.   There is a huge and growing surplus ever year. Surplus funds are invested, just like any other pension fund.

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See also Frozen Pension Myths

 

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