I'm curious if anyone knows how pensions were paid out, received, and if this (can't receive pension in America) holds true?
Pensioners who lived 'Out' in the UK received their allowances in cash from agents/local officials in the payment district where they lived. After 1842, district offices administered the payments.
The pensions were paid to the state-appointed private Agent after 1754, whose clerks compiled lists of where each Out-Pensioner was living and how much he was owed. This information was then sent with the money to each regional Collector of Excise. The Collectors would then appoint a day to go to a county town to pay the Out-Pensioners from the surrounding area.
It was possible to have a qualified pension commuted to allow a soldier to immigrate to British colonies. A list of those who did, between the years 1830-1839, is found online at TheShipsList.com
This website also includes a Table with details of "Return of Out-Pensioners allowed to commute their Pensions since the Year 1830 showing the Number who received the Balances, and the Places at which they were paid" (the United States is included in this Table).
Records of payments made to pensioners living overseas, whether in British colonies or foreign countries, are held in series WO 22 and WO 23, available to search and download on Findmypast.
TIP: use the 'Additional Keywords’ search functions on the
British Army Service Records page to search within the records of payments made to British Army pensioners overseas. Select WO 22 and WO 23 from the series list and, to narrow your search further,
place a country name in the additional keywords field.There is a book entitled "British Army Pensioners Abroad, 1772-1899" - published in 1995. It's an index to the Chelsea regimental pension registers of British veterans who settled
abroad with an army pension.