HL Deb 26 January 1999 vol 596 cc137-8WA
Earl Russell

asked Her Majesty's Government:

What consideration they have given to the situation of pensioners who have worked abroad for extended periods. [HL447]

The Parliamentary Under-Secretary of State, Department of Social Security (Baroness Hollis of Heigham)

The European Community co-ordinating regulations for social security, which include rules on old age benefits, already cover European Economic Area (EEA) nationals who have worked in and contributed to a number of member states' schemes. These regulations seek to ensure that a worker who has worked in and contributed to a number of member states' schemes is not treated less favourably than those remaining in one member state for their entire working life.

The UK also has bilateral social security agreements with some 30 countries, including most EEA countries. These provide for people who have contributed to, or have been insured under, both countries' schemes to receive a pension from each, dependent upon the amount of their insurance in each.

Persons not covered by these arrangements may pay voluntary contributions for any period abroad if they have been resident in GB for at least three years beforehand or have paid (or had paid on their behalf) at least three years' contributions into the GB scheme.

Earl Russell

asked Her Majesty's Government:

Whether or under what circumstances those who have worked abroad for long periods will be eligible for the new second state pension; and how far European Union law on free movement of workers may bear on this question. [HL449]

Baroness Hollis of Heigham

For people who are working, entitlement to the proposed State Second Pension (SSP) will be gained by means of payment of National Insurance (NI) employee contributions. Therefore, someone who is working abroad and not paying UK NI contributions will not be contributing towards the SSP. This is no different from the current situation with the State Earnings Related Pension Scheme.

The European Community co-ordinating regulations for social security, which include rules on old age benefits, seek to ensure that workers who have worked in and contributed to a number of member states' schemes are not treated less favourably than those remaining in one member state for their entire working life. The new scheme will be covered by these co-ordinating regulations.