Pensions and Divorce
If you would like to request a Cash Equivalent Transfer Value (CETV) for divorce purposes, please look at our recent news post first. This has important information about CETV’s.
In the event of divorce or dissolution of a civil partnership you may be asked for information about your pension benefits in the Local Government Pension Scheme (LGPS).
This is usually because the information will be needed when deciding how to treat your pension rights as part of a divorce or dissolution settlement. Your benefits may have an Earmarking Order or a Pension Sharing Order applied to them.
You or your solicitor will need to get in touch with us to ask for information. This will include an estimate of the Cash Equivalent Transfer Value (CETV) of your pension rights. Please note, if your solicitor contacts us, we will need a signed document from yourself to confirm that the information may be given.
A CETV quote is normally free, however there may be a cost if you or the court need one within three months of the initial request. A cost may also apply if you ask a CETV where there is no entitlement to one i.e. you have less than two years scheme membership, or where more than one date is asked for.
In the past you may have put down your former spouse or civil partner to receive any lump sum due on your death. As part of the divorce process you should check your expression of wish form to make sure it is up to date.
For more information please see the Divorce Guide. To ask for a CETV quote please contact us on 01743 252130.
Pension Sharing Order granted after retirement
If a Pension Sharing Order is granted whilst you are taking your pension benefits, they will be reduced by the percentage awarded by the Court, to your former spouse or civil partner. The reductions apply 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 due to your new spouse or civil partner. However, if you have eligible children, any child’s pension due to them won’t be reduced.
When we receive a Pension Sharing Order, and if all the information has been received for the Order to be implemented, we have four months to make the adjustment of the pension in payment, beginning with the later of:
• the day on which the Order applies
• the first day the Order is received.
We try to put in place an Order as soon as it has been received. Where this is not possible because of payroll deadlines, the Order will be put in place the following month. Your pension reduction would be worked out from the date the Order was given. This may mean a backdated reduction will be applied to your pension when we receive the Pensions Sharing Order.