What Happens to Social Security for an American Working in the UK?

Hi everyone

Not sure where to post this question so I'll start on the tax board. I'm on a work permit (intercompany transfer) and will have been in the U.K. for five years next month. Although I was originally a US employee, working in the UK (i.e., paid via the U.S., although I worked in the U.K.), for the last few years, I've been an entirely local employee, paid through the U.K. and on a U.K. contract. It's like the U.S. doesn't even know about me anymore!

Does anyone know what this means for my U.S. social security benefits? My mother just emailed to let me know that my SS statement arrived in the U.S. and it has no contributions down for 2006 and 2007. I understood initially that there was some sort of treaty between the UK and the US that meant that my contributions here had some impact in the U.S. Or something like that. But it's all a little fuzzy for me now. I was initially provided with PWC assistance for all of this, but that's ended and in general, they weren't very helpful!

Thanks for any and all information.

K

This is complex so you'd need someone at PwC who undersands the rules, there are not many such people I suspect.

The totalization agreement gives you partial credit if you do not have enough quarters to benefit in the US.  You also get UK benefits on top in any case.  You may want to investigate paying for voluntary "years" in the UK as well before the price doubles in April 2009.

Sorry I don't have an answer to your question but do have a question for you.

My husband is going to be doing the same thing, working for a US company and paid in US funds.  How did you logistically work out paying your UK taxes, NH insurance contributions?  Did you get paid into a US or UK bank?  I'm getting so stressed out thinking about all this!  Thanks for any help!

Hi susanjc

When I first got here, my company took care of everything so I really don't even know how it worked out. I was paid into a US bank at first. I would say that it's pretty easy to do an international transfer from the US to the UK to pay bills and stuff, so don't worry about that too much. However, I think you do want to worry about how much money you do bring over because at some point, the UK will want to tax it. So for example, when I sold my condo in the US about three months after  I moved, the advice I got was to leave all the money in the US.

I am NOT a tax expert though. You should maybe start a new topic and ask others.

krista

This was the closest thread to what I was curious about, so I decided to revive it.

I just received my annual statement from Social Security and in it it told me that I had "enough credits" to retire if I was 65 and told me how much my benefits would be. It also told me how much money my dependents could receive if I die before they are 18.

My two questions -

Moving to the UK, do I forfeit receiving SSI once I reach 65?

If I die and Tim is left raising any children we have, could he claim SSI benefits for them, assuming they had SSNs?

Not that I'm planning on dying, obviously, but I know the SSI benefits were a big help after my dad died and I want to make sure my children will be taken care of if anything happens.  Is there a similar system in the UK?

no answers, but i have the same question as becca, basically!  many thanks to anyone who has any insight! 

This was the closest thread to what I was curious about, so I decided to revive it.

I just received my annual statement from Social Security and in it it told me that I had "enough credits" to retire if I was 65 and told me how much my benefits would be. It also told me how much money my dependents could receive if I die before they are 18.

My two questions -

Moving to the UK, do I forfeit receiving SSI once I reach 65?

If I die and Tim is left raising any children we have, could he claim SSI benefits for them, assuming they had SSNs?

Not that I'm planning on dying, obviously, but I know the SSI benefits were a big help after my dad died and I want to make sure my children will be taken care of if anything happens.  Is there a similar system in the UK?

You need 40 credits to qualify for a benefit.  One credit is equal to about $1000 of earnings in a quarter (so 4 credits in a year).  The amount of your benefit is based on earnings.

You do not forfeit your SS benefit just because you move abroad. 

YOur DH has to meet the same requirements for a surviving spouse, to collect your SS if you die.  Generally a non-US surviving spouse must have lived in the US as your spouse for 5 years.  However the residency requirement is waived as he is from the UK.

You need 40 credits to qualify for a benefit.  One credit is equal to about $1000 of earnings in a quarter (so 4 credits in a year).  The amount of your benefit is based on earnings.

You do not forfeit your SS benefit just because you move abroad. 

YOur DH has to meet the same requirements for a surviving spouse, to collect your SS if you die.  Generally a non-US surviving spouse must have lived in the US as your spouse for 5 years.  However the residency requirement is waived as he is from the UK.

You do NOT need 40 quarters as the US/UK totalization agreement gives you partial benefits.  These are never shown on the annual statement. You may ALSO be able to collect from the UK as the UK has no minimum qualifying period & allows voluntary contributions.

You do NOT need 40 quarters as the US/UK totalization agreement gives you partial benefits.  These are never shown on the annual statement. You may ALSO be able to collect from the UK as the UK has no minimum qualifying period & allows voluntary contributions.

Yes I know this.  She has earned her benefit already from the US and I was qualifying how she did so, since Becca put it "enough credits" in quotes.  The totalisation agreement doesn't enter her situation as posted.

The top of the form says

* Retirement You have earned enough credits to qualify for benefits.

and then it goes on to list the other categories and my eligibility for Disability, Family Survivors, and Medicare.

I'm assuming these are the numbers I'd most likely be working with in the future, since I'm hoping I can move in 2010 and will only have one more tax year of paying into SSI.

Of course, I still have a looong way to go before 65, but I just was curious how it worked and if I'd see the money at any point (assuming the SSA doesn't collapse in the next 35 years).

(assuming the SSA doesn't collapse in the next 35 years).

That is a big assumption.