Non-UK resident + Defined Benefit plan

watervolume

Just wondering if anyone has been in the same boat as me.

I am a non-UK resident outside of the EEA with money of around £100K in a News International Pension Plan.

The plan's benefits are intended for the purchase of an annuity, and pension draw-down is not supported. The trustees tell me they are not aware of any UK providers offering annuities to non-UK residents which makes it hard to access my money. That leaves the option of transferring the money out. Here my trouble starts:

1) The use of a ROPS (formerly known as QROPS) is one way but finding a local company that can be trusted not to run off with my money would be difficult. Very risky option in my opinion so I'm ruling it out.

2) The alternative is transferring the pension to a UK SIPP but there are two hurdles:

a) The plan contains a guarantee underpin so it's considered DB. The plan's CETV is over £30K therefore getting professional advice is legally required. I tried unbiased.co.uk but no adviser seems interested.

b) There needs to be a UK provider willing to accept the transfer for a non-UK resident. I tried the reputable company Hargreaves Lansdown but they will only consider EEA residents.

Can anyone recommend a good combination of financial adviser and SIPP company for my situation?

xylophone

You might try here

https://www.blacktowerfm.com/services/international-pensions/

Marcon

watervolume said:

Just wondering if anyone has been in the same boat as me.

I am a non-UK resident outside of the EEA with money of around £100K in a News International Pension Plan.

The plan's benefits are intended for the purchase of an annuity, and pension draw-down is not supported. The trustees tell me they are not aware of any UK providers offering annuities to non-UK residents which makes it hard to access my money. 

What do the rules say about the trustees' responsibilities in terms of securing an annuity on behalf of a member? Are you - and the trustees! - sure the rules are silent on the point and/or don't require the trustees to take any action to do so?

xylophone

You might also have a look here

https://harrisonbrook.com/uk-pension-annuity-for-non-uk-residents/

watervolume

Marcon said:

watervolume said:

Just wondering if anyone has been in the same boat as me.

I am a non-UK resident outside of the EEA with money of around £100K in a News International Pension Plan.

The plan's benefits are intended for the purchase of an annuity, and pension draw-down is not supported. The trustees tell me they are not aware of any UK providers offering annuities to non-UK residents which makes it hard to access my money. 

What do the rules say about the trustees' responsibilities in terms of securing an annuity on behalf of a member? Are you - and the trustees! - sure the rules are silent on the point and/or don't require the trustees to take any action to do so?

I am not sure where I would find the "rules". In the letter I received from them, they said I could go for the "open market" option and look for an annuity provider myself. My thought was that if they couldn't find one, what's the likelihood of me finding one!

I think a transfer to a UK SIPP is probably the more straightforward and flexible option in the long run. Yet I see no signposted path for someone in my situation. I can't believe I'm the only person with this problem.

Sarahspangles

Is there a forum where similar non EEA residents may have discussed this?

Marcon

watervolume said:

Marcon said:

watervolume said:

Just wondering if anyone has been in the same boat as me.

I am a non-UK resident outside of the EEA with money of around £100K in a News International Pension Plan.

The plan's benefits are intended for the purchase of an annuity, and pension draw-down is not supported. The trustees tell me they are not aware of any UK providers offering annuities to non-UK residents which makes it hard to access my money. 

What do the rules say about the trustees' responsibilities in terms of securing an annuity on behalf of a member? Are you - and the trustees! - sure the rules are silent on the point and/or don't require the trustees to take any action to do so?

I am not sure where I would find the "rules". In the letter I received from them, they said I could go for the "open market" option and look for an annuity provider myself. My thought was that if they couldn't find one, what's the likelihood of me finding one!

I think a transfer to a UK SIPP is probably the more straightforward and flexible option in the long run. Yet I see no signposted path for someone in my situation. I can't believe I'm the only person with this problem.

You ask the trustees for a copy of the rules. These are a 'disclosure document' so they must provide them and can only charge a 'reasonable amount' - which given they are likely to be supplied in soft copy, should the £nil.

Saying you 'could' go for the OMO doesn't mean there isn't some sort of provision in the rules which means the trustees have to find an annuity provider if you don't or can't, but you need to see the rules (sorry to repeat myself, but that's crucial).

Bostonerimus1

This won't help the OP, but for anyone thinking of moving overseas it's important to think ahead and work out how to access financial accounts and pensions. Things to consider are 2FA and any restrictive rules about opening accounts if you are non-resident.

watervolume

Sarahspangles said:

Is there a forum where similar non EEA residents may have discussed this?

It's possible such a forum exists but by avoiding search engines' web indexing, it's not coming up in searches.

Bostonerimus1

watervolume said:

Sarahspangles said:

Is there a forum where similar non EEA residents may have discussed this?

It's possible such a forum exists but by avoiding search engines' web indexing, it's not coming up in searches.

Head over to Britishexpats.com and find the forum for where you currently live.

watervolume

Bostonerimus1 said:

This won't help the OP, but for anyone thinking of moving overseas it's important to think ahead and work out how to access financial accounts and pensions. Things to consider are 2FA and any restrictive rules about opening accounts if you are non-resident.

The above is a really good point.

As an aside, I actually left the UK around 2006, years before "pension freedom" came about and before Brexit, both of which I believe are responsible for the banes of my current situation: the requirement for financial advice prior to a DB pension transfer and the end of new account opening for non-UK (at least non-EEA) residents at major SIPP and annuity providers.