Pensions and divorce
In the event of divorce or dissolution you may wish to obtain information about your benefits under the Local Government Pension Scheme. You and your partner will need to consider how to treat your pension rights as part of any settlement. You can divide your pension by an Earmarking Order, or by using a Pension Sharing Order.
You may be asked for specific information about your LGPS benefits for divorce/dissolution purposes. You or your solicitor should contact the pensions team for specific information including an estimate of the Cash Equivalent Transfer Value (CETV) of your pension rights. Please note if a solicitor does contact the pensions team we require a signed document from the member to confirm that information may be given.
A CETV quotation is normally free, however there may be a cost if you or the court requires it within 3 months of the initial request, or to produce a CETV where there is no entitlement to a CETV i.e. less than 2 years scheme membership, or where an additional CETV quotation based on same dates or based on different dates is requested.
As part of the divorce process you may wish to review your expression of wish form to ensure it is kept up to date, especially if you have previously nominated your ex-spouse/ex-civil partner to receive any lump sum payable on your death.
To request a CETV or to discuss your LGPS pension in the circumstance of a divorce contact the pensions team or alternatively see the Divorce Booklet.
Pension Sharing Order ordered after retirement
If a Pension Sharing Order is implemented whilst you are receiving your pension, your pension currently in payment will be reduced by the percentage allocated by the Court to your former spouse or civil partner from the date of the Pension Share. On the pensioner member’s death, if you have remarried or re-entered a civil partnership, a Pension Share will reduce the benefit payable to your new spouse or civil partner. However, if you have dependent children, any child’s pension payable will not be
reduced because of a Pension Share.
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.