UK. Expats face post-Brexit pension ‘cliff edge’ warns influential MP
The chair of the influential Treasury committee has called for urgent action to address the risk pension payments to expatriates from UK insurers may be blocked after Brexit.
Nicky Morgan (pictured), chair of the influential committee of MPs, has written to the chancellor, to draw attention to the issue and ask if it would be addressed in the upcoming round of talks between the UK and EU, the Guardian reports. The problem centres around passporting rights, which allow UK and EU insurance companies to sell pensions, savings and insurance products across borders. If passporting ends the day Britain leaves the EU then providers will not legally pay pensions to expat customers.
Morgan, who supported the ‘remain’ vote in last year’s referendum, said: ‘The possibility that UK providers may not be legally able to pay out pensions or insurance contracts to citizens in the EU – including UK expats – is a stark example of the consequences of a “cliff edge” Brexit.’
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