"I don't think SPPA is justified in trying to force pensioners abroad to accept pension payments in local currencies."
I think you need to prove your assertion above. We needn't take your word for it!

Okay, 'Septic'. First, the link. Last but not least, the relevant information pasted from it. Read the last sentence; satisfied now, aren't we!

http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=26&Itemid=99

I don't live in the UK
Overseas Pension Payments
If you live abroad and require that your pension payments are paid into an overseas bank account, via our overseas service provider Citibank, please contact the Payroll Department on +44 (0)1896 893049.
We will issue you with the appropriate mandate for your country, which you should complete and return to the Agency. We would advise that you contact your bank for assistance in completing the form to ensure that the information you provide is correct. Please note that payments will be made in the local currency of the country in which you reside.