Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Pensions and Divorce

In the event of divorce or dissolution you may wish to, or be asked to, obtain information about your pension benefits under the Local Government Pension Scheme (LGPS).

This is usually because the information will be needed to consider how to treat your pension rights as part of any settlement.  Your benefits may be subject to an Earmarking Order or a Pension Sharing Order.

You or your solicitor will need to contact the pensions team for the relevant information, and this will include an estimate of the Cash Equivalent Transfer Value (CETV) of your pension rights. Please note if your solicitor does contact the pensions team, we first require a signed document from yourself to confirm that the information may be given.

A CETV quotation is normally free, however there may be a cost if you or the court requires one within 3 months of the initial request, or request a CETV where there is no entitlement to one i.e. you have less than 2 years scheme membership, or where a variation of dates is requested.

As part of the divorce process you may also wish to review your expression of wish form to ensure it is kept up to date, especially if you have previously nominated your former spouse/ former civil partner to receive any lump sum payable on your death.

To request a CETV or to discuss the above further, please contact the pensions team or alternatively see the Divorce Guide.

Pension Sharing Order granted after retirement

If a Pension Sharing Order is granted whilst you are in receipt of your pension benefits, they will be reduced by the percentage awarded by the Court, to your former spouse/ former civil partner. The reductions become effective from the date of the Order.

On the pensioner member’s death, if you have remarried or re-entered a civil partnership, the Pension Sharing Order will reduce the benefit payable to your new spouse or civil partner. However, if you have dependent children, any child’s pension payable to them will not be reduced.

Upon receipt of a Pension Sharing Order, and providing all the relevant information has been received for the Order to be implemented, the Pensions Team has 4 months to make the adjustment of the pension in payment, beginning with the later of:

• the day on which the Order takes effect; or
• the first day on which the Order is received.

The Pensions Team try to implement an Order as soon as it has been received, however where this is not possible due to payroll deadlines the Order will be implemented the following month and your pension reduction calculated from the date the Order was given. This may mean a backdated reduction will be applied to your pension following the receipt of the Pensions Sharing Order.