UK pension exchange rate fluctuations.

tony glenn

My wife is in receipt of DA. Last year, I qualified for a UK pension, and her DA was reduced because our total means increased.
The calculation regarding the UK pension was based on the exchange rate at the time. Since then, Brexit has hit my UK pension hard, and our total means have reduced.
Is there a mechanism in place that regularly reviews the exchange rate, and reduces or increases DA affected payments accordingly?

infogiver

tony glenn wrote: »

My wife is in receipt of DA. Last year, I qualified for a UK pension, and her DA was reduced because our total means increased.
The calculation regarding the UK pension was based on the exchange rate at the time. Since then, Brexit has hit my UK pension hard, and our total means have reduced.
Is there a mechanism in place that regularly reviews the exchange rate, and reduces or increases DA affected payments accordingly?

I've recently wrote to the dept on someone's behalf regarding this very matter and am awaiting a response
You or your wife should do the same

smjm

tony glenn wrote: »

My wife is in receipt of DA. Last year, I qualified for a UK pension, and her DA was reduced because our total means increased.
The calculation regarding the UK pension was based on the exchange rate at the time. Since then, Brexit has hit my UK pension hard, and our total means have reduced.
Is there a mechanism in place that regularly reviews the exchange rate, and reduces or increases DA affected payments accordingly?

I'm pretty sure there's no automatic review. It's up to you to keep an eye on things. Contact the Social as soon as possible because if you are entitled to an increase in the DA, it might only be dated from the time you enquire.

tony glenn

smjm wrote: »

I'm pretty sure there's no automatic review. It's up to you to keep an eye on things. Contact the Social as soon as possible because if you are entitled to an increase in the DA, it might only be dated from the time you enquire.

Thanks for both replies. I actually managed to get through to Longford by phone yesterday, (I only had to wait 25 minutes). Correct....there is no automatic review. The means are assessed using the exchange rate at the time, and that's how it stays.
You can write and request a review, but the reasoning seems to be 'swings and roundabouts'. I suppose that, in the normal scheme of things, that would be fair enough. Brexit has caused an extreme drop in the value of Sterling, hopefully it will improve shortly. Having said all that, ask yourself.....if the value of Sterling had recently INCREASED dramatically, would be having this conversation?

Gatling

If that was the case everyone with separate over seas pensions would have to be reviewed on a near weekly basis .

smjm

tony glenn wrote: »

Thanks for both replies. I actually managed to get through to Longford by phone yesterday, (I only had to wait 25 minutes). Correct....there is no automatic review. The means are assessed using the exchange rate at the time, and that's how it stays.
You can write and request a review, but the reasoning seems to be 'swings and roundabouts'. I suppose that, in the normal scheme of things, that would be fair enough. Brexit has caused an extreme drop in the value of Sterling, hopefully it will improve shortly. Having said all that, ask yourself.....if the value of Sterling had recently INCREASED dramatically, would be having this conversation?

If Sterling had increased, dramatically, in your favour, then you would be expected/obliged to notify the Social about your change in circumstances. I know in the case of a means-tested non-contributory pension, they will check, upon the recipient's death, if there was any overpayment over the years. I'm not sure if the same applies to all means-tested payments, but it could well do. Although they would claim back an overpayment, I doubt whether they would send a cheque for underpayment! IMO there should be a yearly self-assessed review, or something along those lines.

In your own case, if Sterling shows no sign of increasing in the next few months, I would go ahead and request a review. But, if it does subsequently increase, don't think you've got a windfall. Plan ahead.

I'm no expert here, so that's just my humble opinion.

infogiver

Gatling wrote: »

If that was the case everyone with separate over seas pensions would have to be reviewed on a near weekly basis .

You would be surprised at the amount of pensioners who genuinely expect that that should happen.
The exchange rate was so stacked in their favour for so long, years and years , I can't understand how there was an expectancy that it would always remain so