UK State Pension - Payment Abroad

greenglide

Once set up with the International Pension Service for payment abroad - everything related to the periodic transaction is handled exclusively by Citi - who - acting as intermediary - have on file all payment dates and sterling payment amounts due to State Pension holders paid abroad.

I don't know who told you that but it isn't true.

Each payment (every four weeks, not monthly) is calculated by DWP systems and sent to CITI electronically. CITI then transfer it to the overseas bank. Nobody knows how much a future payment will be until the payment is generated by DWP. Of course the nature of state pension payments is such that they rarely change and anyone can calculate when the next payment will be. This is (or used to be used) as a disaster recovery process as pay everyone the same amount at the same periodicity would work quite well in these circumstances.

Why are you so fixated on these charges and so determined not to believe what other posters say?

LaCaLa

greenglide wrote: »

I don't know who told you that but it isn't true.

To what are you referring?

greenglide wrote: »

Each payment (every four weeks, not monthly) is calculated by DWP systems and sent to CITI electronically. CITI then transfer it to the overseas bank. Nobody knows how much a future payment will be until the payment is generated by DWP. Of course the nature of state pension payments is such that they rarely change and anyone can calculate when the next payment will be. This is (or used to be used) as a disaster recovery process as pay everyone the same amount at the same periodicity would work quite well in these circumstances.

Why are you so fixated on these charges and so determined not to believe what other posters say?

What have I said that you believe 'isn't true'?
Ah...yes, I again- did "mis-speak" when I said 'monthly'; I receive payments (like clockwork) every 4 weeks (and no complaint there).

What dismays me is the opaque nature of the process when one MUST receive these payments outside of the UK - as is the case for me:
To date, over the course of several years, I've now received about 40+ payments - each of which was electronically wired to a bank not in the UK, and always received by that bank in local currency!

Except for several different lump sum amounts received initially (and also received in the same way) - other amounts due are fixed for a year and only change after 12 months if/when there's a COLA increase applied. And, of course, I know (in advance) exactly what these amounts are in pounds. However, that's not how the payments are receivedby my bank. They're received in local currency, having already been converted by Citibank.

Given the extreme volatility of the currency market and the recent relative strength of the £ (believe it or not ) to the $, I wish to know the rate at which Citi converts my funds in each instance.
I know *exactly* how to figure that out - but to do so - must first know their conversion charge.

I can appreciate that others, who receive their pensions in the UK, may be more than a bit confused/mystified/non-plused by all this - and perhaps this isn't the forum in which to address my issue - as there may be few here who actually have direct, personal experience with receiving payments abroad, in local currency.

missbiggles1

LaCaLa wrote: »

No, the poster is incorrect.
I believe it's the same in EU and US:

https://www.gov.uk/state-pension-if-you-retire-abroad/payment

(see: Item3: Payment)......

"Your State Pension can be paid into:
a bank in the country you’re living in
You’ll be paid in local currency - the amount of money you get may change slightly due to exchange rates."

missbiggles - do you happen to know the answer to my original question?

And to ask it another way....

What percentage fee is automatically deducted from the mid-market conversion rate of exchange before the issuance of the pension payment cheque?

The people I know who are retired in other EU countries have their SRP and/or government pensions paid into Euro bank accounts in the country where they live because there are no fees to be paid and because the exchange rate is so good (bulk buying).

I have no knowledge of the situation for people living in the US.

LaCaLa

Thanks for your reply missb....

greenglide

because the exchange rate is so good (bulk buying).

Is the rate for EU conversions favourable now because of the EU banking regulations changing (IBANs and BICs are part of it) so that all transactions have to be carried out in the same timescales and costs irrespective of whether it is same currency or converted (£ to EURO).

This wouldnt be true of GB to US payments.

JezR

The conversion is made at Citibank's mid point rate at the time of payment, so I have seen stated elsewhere. This may take a few days to hit the recipients' account, during which time there may have been some movement. Within Europe this is typically 2 working days; might be different outside.

missbiggles1

greenglide wrote: »

Is the rate for EU conversions favourable now because of the EU banking regulations changing (IBANs and BICs are part of it) so that all transactions have to be carried out in the same timescales and costs irrespective of whether it is same currency or converted (£ to EURO).

This wouldnt be true of GB to US payments.

As I said, I don't know anything about the situation in the US.

https://www.gov.uk/state-pension-if-you-retire-abroad/payment

gfplux

Just to add to the collective knowledge.
I live in Luxembourg.
I am in receipt of a UK state pension but have it paid into my UK bank account.
While not having wanted or enquired about the pension being paid direct in to my Luxembourg bank account I do know this......
Any payment received from "overseas" by my Luxembourg Bank either in Sterling (it is possible to have an account in Sterling) will have a charge added, crazy I know but a fact.
There is a minimum charge and then it increases in bands.

http://www.bgl.lu/en/bank/homepage.htm