Posted August 24th, 2012
My attention was drawn to an interesting Twitter debate recently with regard to 0% pension sharing orders. The premise being that this prevents any further comeback on maintenance variation by way of pension income.
My concern here is that this is heresay, however, it is possible for a 1% pension sharing order to be completed which would dispel any future claim on the pension. It should be noted that you cannot have a pension sharing order on a pension that already has a pension sharing order on it.
Practically though, how would a 1% transfer value work, and it also should be noted that the costs might outweigh any benefits. However, it could be argued that this is a reasonably innovative way of dealing with pension sharing.
Posted November 8th, 2010
I was approached this week by a lady wanting to know whether she could share a pension which she thought might be in the Pension Protection Fund (PPF).
The scheme in question, the Turner & Newall Pension Scheme, applied to go into the PPF in April 2006. Despite four years passing this pension scheme has not been transferred into the PPF which for the lady in question was good news.
This is because under current legislation a pension in assessment for the PPF can have a pension sharing order implemented against it whilst one that has transferred into the PPF cannot. This might seem ridiculous but it is to do with the “pension rights” changing to “compensation payments” after acceptance into the PPF, hence a pension sharing order cannot be applied.
There is good news on the horizon though; the PPF should be in a position from next April to implement pension shares for schemes which have transferred with effect from April next year (assuming that the draft legislation is implemented).
So if your divorce involves a pension which is in assessment for the PPF or is already in the PPF the timing of a pension sharing order is important. For more information on this issue, please feel free to contact me.