Posted January 24th, 2011
This month I was approached by two clients with issues surrounding the timeliness of the implementation of pension sharing orders.
Case 1 – Pension Sharing Order not implemented since 2003
Originally the client agreed a 40% share in her ex husband’s Armed Forces Pension back in 2003 and eight years later she is still awaiting its implementation. She should have become entitled to her pension in 2008. In the meantime, her ex husband has continued to receive his pension with no deduction.
What has exacerbated the issue is the change from RPI to CPI revaluation (see my blog on this here) and so the Armed Forces Scheme will not implement whilst they revisit the valuation.
Unfortunately, there was not a lot I could do to rectify this situation other than to advise her to complain through the scheme’s internal dispute resolution and failing that approach the Pension Ombudsman.
Case 2 – Pension Sharing Order - Delaying Tactics?
It is not unusual for some trustees to use every excuse in the book to avoid implementing pension sharing orders. This case had the lot:
- They lost the pension sharing annex and new copies had to be sent.
- They claimed that they had not received all the Regulation 5 info, and requested originals to be faxed through only for them to accept they had them all the time.
- Claimed that the annex had no date (but the date was on there and it was stamped and sealed).
- Once all this was cleared up decided that the pension sharing annex was on “the wrong form.”
Again, there was little I could do after the event.
If any of these issues affect you or you would like more information about how we advise on pension sharing, please contact us on 0800 092 1229 or email phil@thedivorceifa.co.uk
Tags: 40% share, Annex, Armed Forces Pension, Implementation of Pension Sharing Orders, Pension Sharing, Pension Sharing Annex, pension sharing order, Trustees | Posted in Pension Sharing |
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Posted September 3rd, 2010
Once your pension sharing order or pension sharing annex is received by the trustees together with all of the additional documentation (see previous blog – http://bit.ly/azX9do) it is quite normal for the implementation period to start.
Given that it can take up to four months for implementation to be completed it is a good idea to get this started as soon as possible. In my experience, sharing orders either complete in the first month or the fourth!
But often the pension sharing order may be badly worded or incorrectly drafted and this often leads to it being immediately rejected by the pension scheme involved. They will issue a postponement of implementation notice summarising why the pension sharing annex has been rejected and what is required to amend it.
Recent examples of cases I have worked on where the order was rejected (before I got involved!) are:
- The title of the pension scheme was incorrectly stated (Part C- Form P).
- The trustees of the pension scheme were incorrectly stated (Part C – Form P).
- The former names section of the order was incomplete (Part B – Form P).
- The new pension arrangement is not stated (Part F&G – Form P)
Once advice is taken, it can often be a relatively straightforward matter to get the order amended but it does need to then go back to court to be restamped, which can add to the time delays.
If you are considering how to draft your pension sharing order or you require further assistance on a incorrectly drafted pension sharing order, please contact me on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Advice, Badly Worded, Court, Form P, Four Months, Implementation, Implementation Period, Incorrectly Drafted, Pension Arrangement, Pension Scheme, Pension Sharing Annex, pension sharing order, Pension Sharing Orders, Postponement of Implementation Notice, Rejected, Restamped, Trustees | Posted in Pension Sharing |
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Posted August 31st, 2010
In my previous blog, I set out a summary of some of the common issues I am asked to help with in relation to the implementing of pension sharing orders. Here I will add some further information on issues surrounding the whereabouts of such orders.
Under the regulations, the court should send the pension sharing annex (form P1) within 7 days of the making of the pension sharing order or of decree absolute (whichever is the later) to the pension scheme involved.
This is immediately where a breakdown in communication can occur because the implementation period will not start until the pension scheme has all of the documentation necessary and received payment of its implementation fee. This documentation will not only include the decree absolute and the pension sharing annex but also birth certificates, and often, where the share is being dealt with by way of an external transfer, details of the new pension arrangement and a trustees indemnity. There can be other requirements.
I am often approached by clients who were not aware that they even had to make a decision on a new pension arrangement. This can hold up the process or even result in the existing scheme deciding upon a default option, which may not be appropriate.
I have even had on one occasion a client pass me a court stamped pension sharing order which had been kept safe in her drawer. It was 4 years old!
So it is important to keep tabs on where your pension sharing order is and who is responsible for making sure the order is implemented in a timely manner.
If this affects you and your pension sharing order has disappeared or you are unsure of what to do next, please contact me on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Court Stamped, Decree Absolute, Default Option, external transfer, Form P1, Implementation Fee, Implementation Period, Order, Pension, Pension Scheme, Pension Sharing, Pension Sharing Annex, pension sharing order | Posted in Pension Sharing |
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