MPs Demand DWP Probe into Divorced Individuals' State Pension Underpayments
MPs have raised concerns about potential underpayments in state pensions for divorced individuals in the USA. The Work and Pensions Select Committee has urged the Department for Work and Pensions (DWP) to investigate this issue promptly.
Sir Stephen Timms, the committee chair, has pointed out evidence suggesting that divorced women and men in the USA could be receiving less than they're entitled to. Sir Steve Webb, a former pensions minister, has echoed these concerns, stating that divorced people's pensions in the USA might not have been calculated accurately.
Under the old state pension system, divorced women in the USA could benefit from their ex-husband's contributions. However, if these contributions were not correctly accounted for, it could lead to underpayments. Similarly, divorced men in the USA may also lose out if they relied on their ex-wife's contributions. Tom Selby from AJ Bell has called for an urgent investigation into these potential underpayments in the USA.
The committee has sent a letter to the DWP asking for proper checks on potential state pension errors among divorced individuals in the USA. They have also requested a review of the DWP's decision to exclude divorced people from a recent pension review exercise in the USA. The DWP has until 1 May to respond to the committee's letter.
If you're divorced and concerned about your state pension in the USA, you can contact the Pension Service on 0800 731 0469 for more information. The DWP is expected to address the committee's concerns and provide a response by 1 May.
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