US holiday delays the arrival of UK pensions for Britons in France

British pensioners living in France have reported delays to their UK state pension payments this month after a US public holiday affected the payment process.

Some pensioners expected their payments on Monday, their usual payment day every four weeks, but the money did not arrive as expected.

The issue was raised on Facebook groups and forums, where one pensioner wrote:

“It should have come in yesterday (October 12) and didn’t. The recorded message on the International Pension Centre tells me my money is arriving late this month because they use an American Bank and America has just had a bank holiday and my money will arrive 1-2 days late.

“A small courtesy would have been to have emailed me beforehand in case I needed to move money into my current account to avoid any shortfall due to the late arrival. For some people this could be critical. Does no-one these days understand how to provide a service?” (S.P.)

Other forum users discussed the delays and how they prepared for them.

“Mine is also late and has not yet arrived. It's a bit annoying that it has to be paid via the USA and Federal holidays cause the same problems every time,” one user said.

“I print a list of all US public holidays every year, so that I know when my pension will be delayed,” another one wrote, adding that their Monday payments were delayed a couple of times a year.

“Next year I must make a note of US bank holidays that fall on a Monday so that I can be prepared,” S.P concluded.

Why are payments delayed?

The UK government explains that state pension payments made to people living abroad can arrive a day late if they are due in the same week as a US federal holiday.

This is because a US-based company processes the payments.

October 12 was Columbus Day, a US federal holiday that falls on the second Monday of October. Some federal services and financial institutions close for the day.

In a parliamentary question in December 2021, then UK pensions minister Guy Opperman explained that the Department for Work and Pensions (DWP) uses the US bank Citibank to process state pension payments to people living abroad because the bank “provides a reliable and secure payment route for DWP customers in over 200 countries.”

However, he also stated that “payments to British citizens living overseas are not impacted by American state holidays.”

This appears to contradict the government’s current guidance.

British pensioners living abroad can choose to have their state pension paid into either a UK bank or building society account or a bank account in their country of residence.

Some pensioners prefer to have their pension paid into a UK account and transfer the money abroad themselves.

One user on a forum said: “My pension is paid into a UK account and I transfer it to my French account when the rate is favourable. I know this wouldn’t suit everyone, especially those who rely entirely on their pension, but it makes me feel a bit more in control.”

The government says pensioners living abroad can choose to receive their state pension every four or 13 weeks.