Posted September 28th, 2010
The NHS has just published its schedule of charges for January 2011 onwards.
It makes interesting reading especially the near 600% increase for implementing a pension sharing order. The charge to implement a pension sharing order goes up to £2,760 from £393.62 (an increase of over 600%).
For full details on the increase to the pension sharing order costs and their other proposed charges – see here.
With the current embargo on cash equivalent transfer values slowing up divorces involving NHS Pensions (see here) there is now a clear incentive to get the pension sharing order implemented before January 2011.
However, the cash equivalent transfer value or cash equivalent of benefit calculations are not available and there is still no guidance coming from NHS Pensions.
For £50 plus VAT we are able via an actuary to provide an indicative value of the value of NHS Pensions to help negotiations.
I wonder if this is the start of increases across all the Public Sector schemes – Fire, Armed Forces, Police, Local Government and others. Is this just a cynical income raiser for the Government?
If you would like further information please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Actuary, Cash Equivalent of Benefit, Cash Equivalent Transfer Value, Divorces, Implementing a pension sharing order, NHS, NHS Pensions, pension sharing order, pension sharing order costs, Pension Sharing Orders, Public Sector Schemes, Schedule of Charges | Posted in Pension Sharing |
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Posted August 23rd, 2010
In my last blog entitled “Self Invested Personal Pensions – What are the risks?” I set out the wide range of investments into which a SIPP can invest.
With some divorces taking years to conclude it is important to consider what risks are being taken within the SIPPs.
One of the highest risk investments that could be encountered is private equity or unquoted shares. This is an investment into a private business often one which the SIPP member has a stake in privately or an interest in.
The key here is that this is usually a small business with a closed shareholding which are not quoted on a recognised stock exchange.
Unquoted shares
The attraction of holding unquoted shares in a SIPP is that any profits (which can be high given the high risk being taken) are free from capital gains tax. However, the risk of failure is very high and so for many SIPP providers this is an investment which is to risky for them to allow.
The main issue for the providers is the lack of liquidity and the difficulty of obtaining a valuation. Just like business valuations such investments need to be handled with care and the use of an accountant who specialises in business valuations is highly recommended.
If you would like an impartial review of the SIPP involved in your divorce, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Business valuations, Divorce, Divorces, highest risk, Investments, Pensions, Pensions & divorce, Private Equity, Risks, Self Invested Personal Pension, SIPP, Small business, Unquoted shares | Posted in Self Invested Personal Pensions |
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