Hallo,
A question for the British on this forum.
I am a German/French citizen living and working in France; I will be retired at the end of this month.
After my studies I worked in England for 14 years and 10 months and qualify for a part British state pension, a company defined benefits pension, an „opted out“ State Earnings Related pension and a Additional Voluntary Contribution pension. The latter is with the company Standard Life. Standard Life inform me that I have to take the full sum and I cannot have an annuity, which is contrary to the contract both parties signed. Standard Life references Brexit, but Scottish Widows the provider of my SERP will pay an annuity.
My questions are:
1, Has anyone else had the same problem?
2, Have you found a remedy to the problem?
3, Has anyone taken legal measures?
My pension is small only about GBP 200k but this appears to be a failure to fulfil contractual obligations.
Welcome to Survive France @B73!
I can’t speak from direct experience as I have not started to take money from my personal pension pots yet, but I have discussed this topic with my financial adviser since I am planning to retire in France.
The problem seems to be that since “financial passporting” (I think that’s the term) ceased for most British financial institutions with Brexit, they can’t offer you financial advice unless you are UK resident and also won’t pay pension drawdown or annuity payments into a non-UK bank account.
They will however do it if you set it up while UK resident and have the money paid into a UK bank account; if you subsequently move to France they are OK with that, so long as your UK bank continues to let you operate that account.
I have an account with Nationwide Building Society (who not being a bank are more flexible on such things), and I have recently opened a back-up account with First Direct who are also happy for me to operate it from a French address.
Now whether you still have a UK bank account or would be able to open a UK account at this point and also persuade Standard Life to pay drawdown or annuity payments into it, I don’t know, but that combination might be a potential workaround?
I don;t know if there would be any legal remedy if they refuse, as this situation is due to Brexit, but others may know!
Wish my pension fund was that small 
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Not seen any positive experiences of getting UK annuity post Brexit. None of the provider are authorised to operate in the EU.
Was the Scottish widows payments etc set out before Brexit so no financial advice needed now?
You would at least be able to benefit from the 6.75% tax rate on 100% lump sums, which might be some ‘modest’ consolation on £200k?!
You don’t say whether Standard Life will permit you to take drawdowns, as opposed to annuities. Though a drawdown obviously isn’t the same animal as an annuity, would there not be some advantages for you in being able to draw down amounts flexibly, eg either regularly or ad hoc, to meet your needs?
I think some of the much older non SIPP pensions aren’t very flexible and don’t have provision for drawdown. I consolidated my three pensions into a SIPP before moving to France, one being from the 1980s that would not allow drawdown even if I stayed in the UK. A good financial advisor sorted it all out for me.
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Another thought - the larger of my two pension pots (though still smaller than yours 
) was with Scottish Widows until 18 months ago, when my IFA advised me to move it to True Potential, on the grounds that SW were pretty useless and a nightmare to deal with.
This I did, and the fund has done noticeably better since (though that could be partly coincidence of course).
True Potential will allow me to do drawdown even after moving to France as long as it’s into a UK bank account. I haven’t asked them about annuities but I can check on that if you like.
So I wonder if moving your pot to a different UK provider might give you more flexibility?
The pension has had nearly 30-years of growth since it was last contributed to; it has a minimum growth of 3%. The policy was supported by my employer.
The SW annuity (much smaller than the Standard Grief policy) was set up in the last few months and will make its first payment in 3-weeks. @ChrisMann SW were very helpful.
SL only option is payment in full, no partial payments.
I understand, not sure if it is correct, that a company has a sister entity within the EU, that can be used as a means to provide a service. If this is correct, SL has an opportunity to fulfil its contract and its actions cab be challenged in court.
I dont believe I can transfer the capital. I have delayed the policy by 1-year to allow me explore options.
I don’t know if it’s any help but I have a Standard Life pension that was partly funded by Additional Voluntary Contributions and partly by my employer. SL permit me to take regular drawdowns…I didn’t want an annuity.
Thank you, I will contact again to see if I can draw down in GBP 100k tranches the that limits the impôt, but it does not avoid the cotisations.
As stated above I am delaying the policy by at least one year to give me time and that another pension, not UK, paid out a part in cash.
If you want to empty the pot, doing it in one tranche will be much more tax efficient rather than several. The 6.75% rate for lump sums that @George1 mentioned can only be done once.
Not sure how this would affect you taking out a lump sum from a different pension and how it would be taxed. @George1 would be the person to answer this.
On further reading I believe you are correct, I had found reference to the 7.5% rate being applicable to the first 100k€ but this appears not to be the case. I also read taking the full amount limits the cotisations.
The principle reason for delaying is to obtain time to discuss with my accountant/adviser.
Prelevement forfeiture - 10% allowance on whole lump sum makes 7.5% rate 6.75%. But if no S1 (or private healthcare?) then social charges also apply if your healthcare is paid by France.
But beware, from now (it’s in the budget) if your income is above 250K euro single, double if married, then a minimum 20% tax rate on whole income will be applied. So if affected split your 200K pot somehow - and take one pot in each of two separate years.
Hope that helps and good luck - I think we’d all be interested in what your accountant / advisor advises!
I am certain I recall another thread on here where a Standard Life policy refused to give the flexibility of choices as to drawdown / partial lump sum / annuity, that had been in the terms originally and without any notice or agreement of change in the decades till the decision point arose. ISTR there might have been something about some sort of transfer out being refused too by Standard Life. I think it was here on SF 3 or 4 years ago.
It may have had something to do with a sell-on of the policy or provider.
I remember thinking there is no way I would accept this though and i feel the same in your case.
Thank you. I was aware of the first 10% being at 0% so the net percentage being 6.75%.
When you say income of 250k€, do you refer to the capital taken from a pension, or earned income plus capital, or earned income? If the later that is good news only having to pay 20%. 
I think I may be making a charitable donation this year.
Yes, it will be interesting when I have a meeting with my accountant, but she is not currently working as she has given birth; poor work ethic. Joke.
I am thinking I will get a lawyer to send a letter to challenge Standard Life’s stance. It is the principle that I challenge.
A British colleague made a joke recently: “there are only a dozen pros for Brexit but there are 17,410,742 cons.
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I am prepared to challenge SL’s decision. I had a contract, others fulfil their contracts.
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