Britain 'agrees to open frozen pension talks' with

[Banker]

Britain 'agrees to open frozen pension talks' with Australia

The British Government has finally agreed to open discussions with Australia about the freezing of expat pensions, Australian minister declares.

The British Government is to open discussions with Australia regarding the UK’s controversial “frozen pensions” policy, an Australian minister has claimed.

The alleged breakthrough came after a meeting in London last Thursday between Iain Duncan Smith, Britain’s secretary of state for work and pensions, and the Australian government minister responsible for the frozen pensions issue, Jenny Macklin.

Ms Macklin, who is the minister for families, community services and indigenous affairs, has now issued a statement announcing that during their meeting Mr Duncan Smith gave her a commitment that the British Government would open discussions about the policy with the Australian government.

She also said Mr Duncan Smith had agreed to open discussions with British pensioners in Australia about options they have put forward regarding the scrapping of the policy.

Britain's frozen pensions policy means that around 500,000 British retirees in over 100, mostly Commonwealth, countries have not had their British pensions increased in line with inflation since they emigrated. In some cases that was over 20 years ago when the basic British weekly pension was £54.15. It is now about £107.

www.telegraph.co.uk/finance/personalfinance/offshorefinance/9519928/Britain-agrees-to-open-frozen-pension-talks-with-Australia.html

[Banker]

Webb refutes rumours DWP will unfreeze expat pensions


Pensions minister Steve Webb has quashed rumours the government may unfreeze the pension of British expatriates.

Last week, Australian minister Jenny Macklin claimed she had discussed reforming the policy of freezing state pensions at the point at which expats leave Britain with work and pensions secretary Iain Duncan Smith.

Macklin claimed Duncan Smith had promised to discuss the possibility of reform with the Australian government and British expats living in Australia, the Telegraph reported.

However, Webb yesterday quashed rumours the government is planning a change.
In Parliament, Conservative MP Stephen Phillips asked if Webb had read an Oxford Economics report published last year which claimed uprating expat pensions would encourage more British people to emigrate, reducing their use of health care services and creating net saving.

Webb said: "We estimate the cost of uprating frozen pensions would be about £655m a year. We believe that this is substantially in excess of any hypothetical savings arising from changed migration behaviour that might follow a change in policy on frozen pensions.

"I have indeed read that report, which I think is flawed on a number of grounds. To give an example, it assumes that if we uprate pensions, far more people will emigrate, and it counts savings from health and social care that might not materialise for 15 to 20 years while counting the costs up front."

Webb added: "Our colleagues in the Treasury are not seeking policies with large costs for the current spending review period that will give savings in 2030."

A Department for Work and Pensions spokesperson did not confirm whether Duncan Smith had specifically met with Macklin or discussed expat pensions.

They said: "The state pension is payable worldwide but is only uprated abroad where we have a legal requirement or reciprocal agreement.

"We will continue to speak to officials as part of a wider commitment to exchange views on a range of policies.

"The government has no plans to change its current arrangements for uprating pensions paid abroad."

Around 500,000 British expats in more than 100, mainly Commonwealth countries are not entitled to have their state pensions uprated in line with inflation.

www.professionalpensions.com/professional-pensions/news/2204494/webb-refutes-rumours-dwp-will-unfreeze-expat-pensions

[Banjo]

Good work keeping these posts in one thread, one of the problems here, and I'll admit I'm the worst offender, is people starting a new thread for the same subject every time new information comes up.

[Banker]

Sept 12, 2012 4:43:15 GMT 7 Banjo said:

Good work keeping these posts in one thread, one of the problems here, and I'll admit I'm the worst offender, is people starting a new thread for the same subject every time new information comes up.

Just pay me more money. ;D

[Banjo]

The checks in the mail.