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Thursday, 21 March 2013

Cyprus: pension payments to British expats suspended

Paphos Archaeological Park ruins, Pafos harbour, Cyprus - Cyprus: pension payments to British expats suspended


Pension payments to expat Britons in Cyprus will be suspended until the island's parliament votes on a proposed savings levy drawn up as part of a bail-out package, MPs have been told.

Greg Clark told MPs the situation in Cyprus remained 'fluid' in the wake of the bail-out proposals from the eurozone Photo: Alamy
Greg Clark, a Treasury minister, said pension payments due today had been frozen to ensure that money from the Government reached its intended recipient.
Payments will resume once the situation becomes clear, Mr Clark said, adding that it is possible to change the designated bank account online.
Mr Clark told MPs the situation in Cyprus remained "fluid" in the wake of the bail-out proposals from the eurozone over the weekend, aimed at preventing the country's banks from going bust.
Making a Commons statement, Mr Clark said: "Today is a bank holiday in Cyprus and to ensure any payments made by the Government to banks in Cyprus get to the intended recipient, all future pension payments paid by the Government to British citizens in Cyprus will be temporarily put on hold until least tomorrow.
"This allows us to take stock of developments in Cyprus. Any UK pensioners in Cyprus can be assured their future pension payments are being held safely and the normal payment service will resume when the situation in Cyprus becomes clear.

"However, recipients of these payments are able to switch the bank account into which payments are made with immediate effect by contacting the International Pension Centre, the details of which are available on the DWP website."
HMRC International Pension Centre
He added: "It is necessary that people contact this website as soon as possible."
Mr Clark confirmed earlier announcements that more than 3,000 British Armed Forces personnel based in Cyprus would be compensated by the Government if the levy went ahead to ensure they would not suffer "unreasonable losses".
http://www.telegraph.co.uk/finance/personalfinance/pensions/9938272/Cyprus-pension-payments-to-British-expats-suspended.html 

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