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Overseas Social Security Payments

Volume 76: debated on Wednesday 3 April 1985

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asked the Secretary of State for Social Services if he will estimate the additional cost in £ sterling at current prices of (a) payments to persons in the United States of America from his Department and (b) payments to persons in the United Kingdom from the United States social security administration arising from the agreement on social security recorded in Cmnd. 9443 in 1985–86 and 1988–89, respectively; and if he will make a statement.

Since the benefit provisions of this agreement on social security will not take effect until 1 January 1988, there will be no cost to this Department in 1985–86. The cost in 1988–89, at the rates of benefit payable at the present time, is estimated as £210,000. The cost to the United States social security administration of payments arising from the agreement is a matter for the United States authorities.

asked the Secretary of State for Social Services what, consequent on the agreement on social security described in Cmnd. 9443, will be the entitlement to benefit of a United Kingdom citizen with a sufficient insurance record who falls sick while working in the United States of America before he has been credited with four quarters of coverage under the laws of the United States of America.

From January 1988 a United Kingdom citizen who falls sick while working in the United States of America and who is unable to qualify for United States disability benefit will be able to receive United Kingdom invalidity pension if he has not been absent from the United Kingdom for more than five years and, when he left the United Kingdom, he satisfied the contribution conditions for sickness benefit.

asked the Secretary of State for Social Services if he will specify the distinction in the rules relating to the social security entitlement of United Kingdom citizens in the United States of America and in Canada following the full implementation of the agreement on social security between the United Kingdom and the United States of America described in Cmnd. 9443.

Under an agreement on social security made in 1969 between the United Kingdom and the United States of America, United Kingdom pensioners living in the United States of America receive uprating increases of retirement and widow's pensions. The agreement described in Cmnd. 9443 continues this.The new agreement regulates liability to social security contributions for people from the United Kingdom working in the United States of America so that they are liable to contribute to one country's scheme only in respect of any one employment. In relation to benefit entitlement for people in the United States of America, with effect from January 1988 the new agreement provides as follows:People who have been insured in both countries and do not have entitlement to retirement or widow's pension from either will be able to aggregate insurance in both countries to qualify for a proportional rate of pension.People who fall sick and cannot qualify for United States disability benefit will be able to receive United Kingdom invalidity pension if they have not been absent from the United Kingdom for more than five years and if, when they left the United Kingdom, they satisfied the contribution conditions for sickness benefit.Payment of United Kingdom guardian's allowance will continue.

There are no arrangements between the United Kingdom and Canada which affect the social security entitlement of United Kingdom citizens in Canada.