Worked in UK? Impact of Brexit on Your Retained UK Pension
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Brexit will not compromise pension benefits, child benefit and other social welfare payments for Irish citizens who worked or are currently working or living in the UK.
As Brexit is only a matter of months away, many people may find themselves wondering how exactly this is going to affect Ireland. Though the outcome is still in some ways, unclear, the impact on the financial sector is a little easier to explain. There are ongoing talks going on between the Irish and UK governments to ensure that an open relationship is retained between Ireland and the UK post-Brexit. This is good news, particularly for Irish residents seeking pension benefits they earned working in the UK.
The impact Brexit will have on these benefits is no longer of great concern and IPS Financial Advice are happy to help you make sense of the current process with regards to your pension. Within the last few days a deal has been struck between the British and Irish governments to ensure that Brexit does not compromise pension benefits, child benefit and other social welfare payments for Irish citizens who worked or are currently working or living in the UK.
Once this deal was struck, statements by members of the government were released such as Regina Doherty, Minister for Social Protection and her British counterpart, Amber Rudd, the current UK secretary of state for work and pensions. The two signed a convention at the start of the month to ensure the "reciprocity of social welfare rights and entitlements". These rights are currently recognised under what is often referred to as the common travel area.
On the subject at hand, Ms Doherty said, "Under the terms of the agreement, all existing arrangements, with recognition of, and access to, social welfare entitlements will be maintained in both jurisdictions.”
She continued:
"This means that the rights of Irish citizens domiciled in Ireland to benefit from social insurance contributions made when working in the UK and to access social insurance payments if resident in the UK are protected."
Though the deal must be endorsed by the Dáil, it appears to be merely a formality.
In another statement released by a spokesperson for Ms Doherty, it is understood that the Government had been gearing up for a no-deal Brexit, as the March 29 deadline fast approaches for the UK's departure from the EU. Though such progress has been made, there is still uncertainty surrounding the continuation of smooth payment of British private pensions post-Brexit.
In relation to the matter at hand, one pension provider advised its Ireland-based clients to open UK bank accounts in order to avoid the loss of payments. It is understood that pension providers at Pension Insurance Corporation told members in Ireland, "As it stands, insurance providers may not be able to continue paying out to overseas bank accounts after Britain leaves the EU in March 2019.”
They also went on to say, “The massive insurer, which pays pensions to 150,000 people in the UK and Ireland, said if a deal on future banking arrangements is not reached by March, it "will need to pay your pension into a UK bank account".
For more information on how IPS can help, contact Mark Ryan at [email protected] or call 089 4064431