Posted September 10th, 2010
In one of my previous blogs I covered the delays that can happen at the start of the process and lead to a postponement of implementation notice being issued. This blog covers the problems caused when the four month implementation period is breached and details what you can do about it.
The regulations set the timescale for implementing a pension sharing order at four months which you would expect is plenty time for the trustees of any pension scheme to organise the internal transfer or external transfer of pension assets. But it is not the trustees who usually arrange the implementation of a pension sharing order but the pension scheme administrator. Unfortunately, this can mean delays because the standard of pension administration differs hugely between administration providers and pension schemes.
Part II of the Pension Sharing (Implementation and Discharge) Regulations 2000/1053 sets out the requirements in terms of notifying the Pension Regulator of failure of the trustees to implement the share within the 4 months. This section also sets out the circumstances in which the trustees may seek an extension and penalties which may be applied (maximum £1,000 for individuals, £10,000 otherwise). Making the trustees aware of their duties to report to the Regulator should be enough to scare them into action.
In fact, in such cases it is usually the threat of going to the Regulator about delays which really gets things moving.
If you are suffering delays in the implementation of your pension sharing order or you are looking to avoid such problems, please contact me on 0800 092 1229 or email email@example.com