Posted February 3rd, 2012
This week I attended an excellent seminar in London. The principal speakers were Edward Hest, District Judge, Principle Registry Family Division, David Lockett, Consultant Actuary, Actuaries for Lawyers and Philip Way, Partner Mills and Reeve LLP. The course was a mixture of practical guidance, hot topics and case studies.
The course was extremely enjoyable from the point of view of updating my Continue Professional Development (all Resolution Accredited IFAs have this obligation to keep their accreditation) but on a personal note is was lovely to meet up with many of my fellow Resolution Accredited IFAs and put a face to an email or Linked In contact and to talk shop with them.
I was struck by the level of co-operation and collaboration that went on during the day and this bodes well for the future of financial advice and planning within divorce cases.
Tags: Pensions on divorce | Posted in Resolution Accredited IFAs |
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Posted January 13th, 2012
I have recently been asked to assist in a challenging divorce case involving a client who was in serious ill health. Serious ill health is defined as life expectancy of 12 months or less and there are strict rules surrounding the payment of benefits in this situation.
I was asked to provide guidance on a number of scenarios:
- The benefits are drawn now based on normal health.
- The benefits are drawn now based on serious ill health provisions.
- What happens on death.
- What benefits might be paid to children.
- What benefits would be payable if the pensions were subject to 100% pension sharing orders.
Where the planning opportunities arose was in the difference between benefits that been crystallised (i.e. in payment) and uncrystallised (i.e. those that were not).
For uncrystallised benefits it is possible for a tax free lump sum to be taken in lieu of the whole of the pension benefits. But for crystallised benefits this is not
possible and either ill health retirement provisions apply for final salary benefits or impaired life annuities or drawdown for money purchase with the option
for lump sum benefits to be paid upon later death.
It was important to understand each client’s needs and what they were looking to achieve. Then it was a case of balancing the desire for a tax free payment now versus protecting the value of the benefits that had been accrued to date.
If your divorce settlement / pension sharing case is affected by these issues why not get in touch for a free, confidential, no obligation chat on 0800 092 1229 or send an email advice@thedivorceifa.co.uk
Tags: Crystallised, drawdown, Final Salary, Impaired life annuities, lump sum, Money Purchase, Pension, Pension Benefits, Pension Sharing, Serious Ill Health, Uncrystallised | Posted in Pension Sharing |
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Posted January 6th, 2012
Cash Equivalent Values (CEVs) from the public sector are currently on hold.
We received further information from the actuaries we use (Bradshaw Dixon Moore) on the subject which is worth sharing here – http://www.ancillaryactuary.co.uk/home/2011/12/29/public-sector-pensions-green-shoots.html
What was interesting was that they had quite rightly in my opinion taken the decision not to continue with estimated values for pending reports. Although, this inconvenienced clients and solicitors it was an important stance to take.
I received this response from Peter Moore at BDM when further questioned.
“Publication of the transfer club factors vindicated our stance. We understand that the mortality rate changes for some schemes are material and vary by age and gender. We believe that this provides a reasonable guide as to how the CEVs will change, scheme by scheme; but want to see the actual scheme factors and some new basis valuations before we can be certain.
One of the big issues from our perspective is professional actuarial integrity. If an actuary writes a report and cannot be certain that key numbers and results are reasonable and correct, there is a professional obligation to clearly state the position. Our view is that although such a report can be produced and be compliant from an actuarial perspective, we do not feel that such a report would be acceptable to a court that would wish to place reliance on it as expert guidance – ie Expert Witness Reports. From our perspective, we want our reports to all be fully compliant and avoid reports with too many caveats.”
So if you are involved in a divorce where an old or estimated CEV is being used I would be very cautious. If you would like to discuss this issue in more depth, why not get in touch for a free, no obligation chat on 0800 092 1229 or email us advice@thedivorceifa.co.uk
Tags: Actuaries, Cash Equivalent Transfer Value, Cash Equivalent Values, CEV, CEVs, Divorce, Pensions, Pensions & divorce | Posted in Pensions & divorce |
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Posted January 3rd, 2012
We are experiencing a higher than normal level of calls in respect of these pension schemes, and in particular, the issues regarding drawing benefits early.
The armed forces scheme has taken a welcome stance which is that pension credit members can draw benefits at age 55, rather than age 60 which continues to be the case under the Police Pension Scheme and the Fire Service Pension Scheme. Albeit there is a reduction for early payment!
It is hoped that at some point, all of the schemes will draw into line with each other, however the current guidance appears to be that this is unlikely.
If you are experiencing difficulties with your pension settlement in any of these pension schemes, why not get in touch for a chat on 0800 092 1229 or email phil@thedivorceifa.co.uk
Tags: Armed Forces, Fire Service Pension Scheme, Pension, Pension Schemes, Pension Sharing, Police Pension Scheme | Posted in Pension Sharing |
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Posted December 27th, 2011
I have recently contacted by a UK national living in the US and divorcing in the USA. She wanted to return to the UK and implement a pension sharing order that the US court had applied against her husband’s UK pension and second state pension.
It is not possible for a UK pension scheme to implement an order made in a non UK court. Therefore it is often perceived that overseas divorces mean that a UK asset, such as a pension, cannot be subject to a pension sharing order.
However, in the Matrimonial and Family Proceedings Act 1984 (Part 3) there is a provision for a court order in the UK to be made on the back of a foreign divorce.
This can be done relatively easily where there is consent, although not impossible to obtain one without consent.
The key is to ensure that the foreign court is aware of the UK’s stance on foreign court orders, and to ensure that the Part 3 regulations are followed in accordance with the foreign divorce to ensure that the UK asset is dealt with appropriately.
So if you are divorcing abroad and it involves a UK asset and you are returning to the UK, why not get in touch and see if we can help with your pension sharing order. We have experience of working with clients moving back from all over the world including USA, Singapore, Australia, Canada and Europe. Call us now on 0800 0921229 or email phil@thedivorceifa.co.uk
Tags: Divorce, Overseas Divorce, Pension, Pension Sharing, pension sharing order | Posted in Pension Sharing |
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Posted December 20th, 2011
I am pleased to announce that the Resolution Accredited Independent Financial Advisers (IFAs) have been given a nice gold logo to use to distinguish them from the family lawyers and this is now proudly displayed on our website.
As one of only ten advisers in the North West with this designation I am extremely proud of this qualification.
If you would like advice in respect of pensions and your divorce financial settlement or pension sharing why not call us on 0800 0921229 or email phil@thedivorceifa.co.uk.
Tags: Divorce, Financial Settlement, IFA, IFAs, Pension, Pension Sharing, Resolution, Resolution Accredited, Resolution Accredited IFA, Resolution Accredited Independent Financial Adviser | Posted in Resolution Accreditation |
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Posted December 20th, 2011
Every now and again a pension sharing order takes time to be implemented and I have had a recent spate of orders that have not completed in timely manner.
There is normally a good explanation as to why implementation has not occurred and typically there will be outstanding documentary requirements or the order is invalid due to a typing error, or incorrect policy number etc.
Another reason that often occurs is the payment of the fee for implementation has not been paid, particularly when the ex spouse is expected to pay half or all of the costs.
This should not be confused with delays that can occur once the implementation period has started. The timescale for implementation is four months from the date that all the documentation has been received and in my experience, orders tend to be completed very quickly in month one, or unfortunately, towards the end in month four.
I recently had an interesting discussion with one pensions administrator who was talking about taking the fee from the pension pot or from the credit of the ex spouse, or putting a block on them retiring so as to not delay the implementation of the pension sharing order. Whether they are able to do this is a mute point, but shows that once the order is in place the pension scheme is under an obligation to implement where possible.
If you are struggling to implement your pension sharing order or have any questions regarding it why not get in touch on 0800 0921229 or email phil@thedivorceifa.co.uk.
Tags: Implementation, Pension, Pension Sharing, pension sharing order | Posted in Pension Sharing, Pension Sharing Order |
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Posted September 26th, 2011
I have recently completed a pension sharing case where the length of time for the work from start to finish was 14 months. This is not unusual.
In this time the clients Cash Equivalent Transfer Values, and her share of them has increased by 12%. Not bad considering what the markets have done in the intervening period but more luck than judgement.
This is not always the case, and often the value of pensions etc can reduce over this period of time. So we have actually been quite lucky here.
With the implementation period being up to 4 months, it is important to get your Pension Sharing Order, Consent Order and any other documentation required by the ceding scheme to get the pension credit implemented as soon as possible. The quickest I have managed to get a pension
order and consent order implemented is less than three weeks from start to finish.
If you need assistance with your pension sharing why don’t you get in touch on 01204 663904 or email me Phil@thedivorceifa.co.uk
Tags: Cash Equivalent Transfer Value, Ceding Scheme, Pension Credit, Pension Order, Pension Sharing, Pension Sharing Case, pension sharing order, Pensions | Posted in Pension Sharing, Uncategorized |
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