Pensioners across Europe face Pension Payment Problems Post Brexit
The Daily Telegraph reports once again that British ex-pat pensioners are showing concern about their position in relation to their private pensions. So far there has been no reciprocal arrangement thrashed out for the various ways ex-pat Europeans receive their pensions.
Whilst, as we all know, nothing has been decided as yet, as it stands at the moment, it is likely that certain types of payments, annuity payments in particular, may not be able to be processed following Brexit. March 2019 is alarmingly close for so many issues across the board to still be outstanding with no indication as to how they are going to be dealt with when the axe finally falls.
The chair of the Treasury committee, Nicky Morgan, set out in a letter to the Chancellor, Philip Hammond, the conundrum that will face insurers if no clarity is given on this point, they will face “breaking the contract or breaking the law” neither measure is welcome.
At present the so called “passporting rights” make provision for the insurance sector to offer cross-border insurance, all this will end with Brexit unless some other solution is found. Difficulties in receiving payments may arise, according to Ms. Morgan, both UK to Europe and Europe to UK as well. The loss of passporting arrangements will not only affect pensions but also business insurance contracts which may leave businesses unable to access UK liability insurance.
Experts in the insurance sector feel that since European regulation is applicable to insurance in the UK and also there is considerable legislation emanating from Europe governing this sector it should not be too difficult to come to a satisfactory arrangement to permit the flow of pension payments in both directions.
State pensions will be unaffected since the EU and Britain have already reached an agreement.
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