IRRC it is that if you leave the UK and move to certain other countries, notable Canada, your service pension is frozen at the amount it was when you left the UK i.e. no increase of pension for you. Just imagine if you left in the 1970s you pension today will not have increased at all.
This is something the Canadian Government have been complaining about for years, as it has left many people below the poverty line with the Canadians having to make up the difference.
the worst of it is it all depends on which country you go to. So Canada - UK screws you, USA - you get each increase.
This effect Old Age Pension ONLY.
This question pops up on a regular basis but I've given the answer so many times i really can't be bothered looking it all up again.
Try the search function.
Instead of continuing the case for discrimination they should change tack & sue the Govt for positivley discriminating in favour of those that ARE receiving the increments. This will force the 'i'm-alright' jacks (ie those receiving the increments) into joining the various support groups and double the numbers currently trying to prove their point.
Also be aware that [IIRC] to recieve a full state pension you must have 47 years 'stamps'. If you retired at 60 [like a lot of CS jobs] and have worked 42 years then the other 5 are credited to you. This only applies if you are in the UK for those years. If you go and live in eg., Spain then you lose those years. [That's the reason I don't get a full state pension despite having paid contributions from 16 years of age to age 58 and despite paying tax to UK on my other pensions]. The answer is of course to not tell them you are living abroad for more than half of each year. If I had known this fact at the time , I may have been economical with the truth.
Register your details at a siblings/friends house (bank, passport etc etc) and come back for the days required to meet residentcy status. I believe that you can also continue to make N.I. contributions even if you're not working. Bit of a pain in the arrse, but possibly a solution.
Having just been for my morning swim, I have been informed that the European Court threw out the appeal on the grounds that You/We have the right to choose where we live and so are not disenfranchised by choosing we we live. http://www.timesonline.co.uk/tol/money/pensions/article5079275.ece
And I know it's wrong/bad to say I told you so but I have commented in the past, that anyone who worked in UK would still be on the UK's Benefit Books.