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29-Apr-08 10:15 [Pensions]
High court ruling muddies pension's waters Retirees who go to live abroad could see their state pensions cut after a ruling by the high court.
A case was brought by pensioner Eric Burley who moved to Paris in 2004 only to find his state pension reduced by 65 per cent, despite being told by the Pensions Service that no such cut would take place.
The court ruled that people who make national insurance contributions under separate cross-border schemes than those defined by European Commission regulations are excluded from full state pensions.
Speaking to Citywire.co.uk, Steve Laird, principal of Carrington Wealth Management, believes the ruling was harsh.
"If someone makes a contribution to a state pension scheme through national insurance contributions anywhere in the world, they should be able to accumulate benefits whether or not it's paid by the home country," he said.
The judge's decision overturned an earlier ruling on the case by the Social Security Commissioner.
A recent report from the Office for National Statistics found that 200,000 British retirees moved abroad in 2007.
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