§ Lord Stallardasked Her Majesty's Government:
What is the total cost of implementing all reciprocal agreements between the United Kingdom and other countries to pay index-linked pensions to citizens living abroad.
§ Lord GlenarthurThe total annual cost of paying November 1983 pension increases in those countries with which the United Kingdom has an appropriate reciprocal agreement is approximately £4.6 million.
§ Lord Stallardasked Her Majesty's Government:
What is the nature of the agreements between the United Kingdom, and (a) Spain, (b) Austria, (c) Yugoslavia, and (d) Bermuda on the indexing of pensions for United Kingdom pensioners living in those countries; and what is the reciprocal cost to the United Kingdom Treasury of operating such agreements.
§ Lord GlenarthurUnder the reciprocal agreements on social security which the United Kingdom has with Spain, Austria and Yugoslavia, British pensions are paid in those countries at the same rate as would be payable if the pensioner was in the United Kingdom.
The reciprocal agreement on social security which the United Kingdom has with Bermuda provides for United Kingdom pensions to be paid at the rate which was applicable when the person was last ordinarily resident in the United Kingdom, or when he or she first became entitled to pension, whichever was the later, plus any increases in pension awarded in the United Kingdom after 1st November 1969. The agreement also enables a person to qualify for a Bermudian non-contributory old-age pension, which is based on residence, by allowing residence in the United Kingdom to be treated as residence in Bermuda. The amount of Bermudian pension thus payable is, however, reduced by the amount of United Kingdom pension in payment.
The approximate annual cost of paying November 1983 pension increases under each of the above agreements is as follows; £310,000 (Spain), £44,000 (Austria), £56,000 (Yugoslavia), and £9,000 (Bermuda). It is not possible to quantify savings on United Kingdom benefit expenditure as a result of the countries in question paying their pensions in this country.