PENSION FACT SHEET 12
Issued on behalf of British Age Pensioner
Alliance, these Fact Sheets support the 20 year
story of the fight for
PARITY by 540,500 UK State Pensioners. Why should they be deprived of
annual indexation of their pensions because they live in certain countries
while another 565,000,living in other countries, are not ?
Why Pay Pensions to
Overseas Residents ?
People sometimes ask why British pensioners resident overseas should be
paid any pensions at all. They argue that pensions are paid out of current
taxation, and it is wrong that those who have gone overseas should receive any
Fact: The answer is simple. They have paid for
their pensions. Throughout their working lifetime in Britain, they paid
their taxes, paid their National Insurance Contributions and met the cost of
paying the pensioners of their day, just like everybody else.
Fact: As well as the basic contribution for pensions, they
paid for additional pensions (graduated and SERPS) either to the state NIF
or to a contracted out pension scheme. Many of them also paid for private
pensions through life insurance or other finance companies.
Fact: Some paid from 16 to 65 (or 60), thus earning the full pension, and when
they got their pension some decided to join their children who had emigrated
many years before, and spend their retirement with their grandchildren. Our
question is: "Why should they not be paid their pensions?"
Nobody would deny them their private pensions, nobody would deny them their
contracted out pensions, so why should they be denied their state pensions
from the NIF ?
Fact: Those who emigrated before completing a full working life have not earned a
full state pension, and are not entitled to the full state pension from the
NIF. They are, however, entitled to get what they paid for - not a penny
Fact: British pensioners resident overseas are subject to a kind of
lottery. If they have chosen to emigrate to one of the favoured countries,
their pensions will be indexed each year in line with the pensions paid to
UK residents. But if they have chosen badly, their pensions will be "frozen"
at the time when they are first paid in their new country.
Fact: If their first payment was £46.90, (the rate in 1990) then it will
always be £46.90 even 20
years later in 2010; it will not keep pace with world-wide inflation.