State pension changes - impact on foreigners working in the UK temporarily

MotT

Hi All,

I'm a German citizen temporarily working in the UK - for 2 years now, it'll certainly be another 2 - 5 years before heading home.

I read in today's FT Weekend issue (19 Jan 13) that, after the recent reform, those contributing less than 10 years probably won't get any money out of the UK's pension funds.

Do you know if this is true and indeed applies to people working and contrinbuting here temporarily?

Thanks, MT

atush

First of all, you are contributing now, before any changes. So these years should be preserved.

As far as after any change (ie is it 2017? Not sure) will you still be here? If britain is still part of the EU, I would imagine you would still have entitlement to transfer to the UK scheme. But again, something to look into after the details are published.

JezR

The reciprocal arrangements regarding NI with the EEA and a few other countries are not not affected by this Bill. It would actually increase the proportion relating to basic pensions (as 1/35 of £144 is greater than 1/30 of £107), but eliminate any future S2P which is paid on top of this. Existing rights in a UK pension would be maintained.

'Australian backpackers' were mentioned by the pensions minister as losing out by these changes (no reciprocal arrangement with Australia, so would need 10 years of contributions paid in the UK for a UK pension after 2017). However, there will be no loss to any New Zealand (or indeed American) backpackers, where there is an arrangement in place.