Originally Posted by
Haraka
Well at least you GET a NP increase. Those of us retirees in many countries have our U.K. National Pensions frozen, have no reciprocal medical cover, cannot vote in the U.K. yet are still taxed at source on our total UK pensions.
Are you in the EU? And is it your occupational pension, or your basic state pension? This might help.
Britain and EU reach agreement over expats' state pension after Brexit
Members of schemes such as AFPS receive annual upratings in line with inflation, paid irrespective of where you live (3% yesterday, huzzah, break out the Lidl Prosecco). However, there is an issue connected with the annual uprating of the Guaranteed Minimum Pension (GMP) part of it. AFPS was contracted out of State Earnings Related Pension Scheme (SERPS) in April 1978. Under legislation of the time, anyone who was contracted out paid lower National Insurance Contributions and in return, their private pension scheme is expected to provide a pension over and above the basic state pension for that SERPS element alone.
Be glad you're not in the British Steel Pension Scheme. The proposal is, and it'll happen, that
all pre 1997 indexation stops. Even for pensions in payment. Members have until Dec 11th to decide whether to accept PPF rules, the new scheme (as mentioned), or transferring out to a defined contribution pension. Remember the AFPS RPI/CPI switch? It won't be the last fastball.