§ Mr. Llew SmithTo ask the Secretary of State for Social Security what assessment he has made of the effect of the current exchange rate on overseas pensions. [54401]
§ Mr. DenhamPensions and Overseas Benefits Directorate (POD) currently pays in excess of 800,000 customers in around 200 countries worldwide.
Various methods of payment are used to pay pensions abroad. Customers in 30 countries are paid by Credit Transfer in sterling. This is converted to local currency and paid directly to customers' bank accounts. Pensioners are offered a favourable rate of exchange due to the bulk buying of currency. They are not charged for this service. 481W Pensioners who do not receive their benefit by this method are paid in sterling and they are responsible for converting their payments to local currency.
The exchange rate is variable and subject to fluctuation. There are no provisions in legislation to allow adjustments to be made when variations occur between sterling and foreign currencies. POD monitors the exchange rates to ensure that customers continually receive a preferential rate when paid by Credit Transfer.