Posted July 12th, 2011
In one of my previous blogs “two pension schemes or one?” I regaled you with the woe filled story of the two pre-approved pension sharing orders which were subsequently rejected by the pension schemes involved.
They were arguing rather belatedly in my opinion that the two periods of service and two cash equivalent transfer values (CETVs) they had provided us with were actually on reflection part of only one scheme.
Happily we have managed to get them to see the error of their ways and they are now in process of implementing the two pension sharing orders. All’s well that ends well.
If you are struggling to implement your pension sharing order and would like some advice why not get in touch on 0800 092 1229 or email me phil@thedivorceifa.co.uk
Tags: Cash Equivalent Transfer Value, Pension Sharing, pension sharing order, Pension Sharing Orders | Posted in Pension Sharing |
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Posted April 1st, 2011
In the last few weeks an increasing number of clients have approached with pension sharing orders which need implementing as the existing scheme is not prepared to offer an internal transfer and they do not know what to do.
They themselves are members of final salary pension schemes (usually Public Sector) and have found out at the last moment of the divorce that their existing pension scheme will not allow their pension share to be transferred in.
So what next? - The pension transfer has to go somewhere and it is up to the client to set up a new pension arrangement to accept the transfer.
If this is you and you would like advice from a Resolution Accredited Independent Financial Adviser on how best to approach the implementation of your pension sharing order then call me on 01204 663904 or email – phil@thedivorceifa.co.uk
Tags: Divorce, Final Salary Pension Schemes, internal transfer, Pension Scheme, Pension Sharing, pension sharing order, Pension Sharing Orders, Pension Transfer, Resolution Accredited Independent Financial Adviser | Posted in Pension Sharing |
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Posted February 28th, 2011
This month I have received an increasing level of enquiries concerning pension sharing orders and in particular, where is my pension?
What seems to be happening is that a pension share is being agreed (without any guidance) at a certain percentage (this month they seem to be ranging between 35% and 55%) and then nothing is happening with regard to any paperwork.
To get your pension share at retirement it is important to conclude the paperwork at the time of divorce, otherwise you can encounter problems later – See my previous blog on a shocking pension sharing case – http://www.thedivorceifa.co.uk/pension-sharing/pension-sharing-more-recent-issues
So if you have agreed a pension sharing order it is important to do the following:
- Contact the pension scheme involved and ask them to confirm how they deal with a pension share and what paperwork they need completing.
- Organise the correct court paperwork – pension sharing order, consent order, decree absolute and any other paperwork (existing and/or new pension scheme).
- Pay the pension sharing charges.
If you complete this paperwork then implementation of the pension sharing order should occur. Don’t wait to your retirement to ask where is my pension?
If you would welcome some assistance on your pension sharing order, your options and how to get it implemented, please feel free to contact me on 0800 092 1229 or email me phil@thedivorceifa.co.uk
Tags: Pension, Pension Scheme, pension share, Pension Sharing, Pension Sharing Case, Pension Sharing Orders, Retirement | Posted in Pension Sharing Order |
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Posted January 21st, 2011
The lifetime allowance is back in the news and will from April 2012 reduce from £1.8m to £1.5m.
But how does the lifetime allowance work in the context of divorce and pension sharing? In particular, how does it affect pension credits and pension debits now? And how will this reduction affect pension sharing orders going forward?
Pension Credits
Where a pension credit is awarded this becomes an asset of the new owner and will form part of their overall pension entitlement which (at some point in the future) will be tested against their lifetime allowance.
Therefore, it is advisable to check (in high value cases) to see if the amount of the credit will take them over the lifetime allowance. If it will, then they may want to consider an alternative strategy or reduce the amount of the pension share.
Pension Debits
A pension debit does not count towards the lifetime allowance of the member whose pension was shared. This means it is only the benefits that they actually receive that will be tested against the lifetime allowance.
If already in payment, the ex-spouse can apply for an increase in their standard lifetime allowance as the pension has already been tested against the lifetime allowance. The increase factor is found by dividing the pension credit by the standard lifetime allowance in force when the pension sharing order is made.
Where a debit arises then rebuilding of lost pension may be advisable.
Future Pension Sharing Orders
With a reducing lifetime allowance it will be even more important to make checks before proceeding. The limit will be lower and therefore, potentially more people will be affected.
If this issue affects you or your client, please contact us on 0800 092 1229 or email phil@thedivorceifa.co.uk
Tags: Asset, Divorce and Pension Sharing, Future Pension Sharing Orders, Lifetime Allowance, Pension Credit, Pension Credits, Pension Debit, Pension Debits, Pension Entitlement, pension share, Pension Sharing, Pension Sharing & the Lifetime Allowance, pension sharing order, Pension Sharing Orders, Standard Lifetime Allowance | Posted in Pension Sharing |
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Posted December 13th, 2010
Pension Sharing Order – Need advice now?
Why not book a free no obligation review of how pension sharing affects you. Need some specific advice on a pension sharing order – I can provide it!
Unfortunately, there is a lot of misinformation out there on what can and cannot be done with pension sharing orders.
I offer a free 30 minute consultation by telephone so why not call me now on 0800 092 1229 to arrange or send an email to phil@thedivorceifa.co.uk Virtual sessions available webcam too!
Tags: 30 minute consultation, Advice, Free, Misinformation, No obligation, pension sharing order, Pension Sharing Orders, Review | Posted in Pension Sharing Order |
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Posted November 1st, 2010
I was contacted by a lady this week who was wondering whose responsibility it is to send the court paperwork (consent order and pension sharing order) to the scheme. In this case it related to an NHS pension but the issue is very common indeed.
I have blogged before on this issue and other related issues – see here – http://www.thedivorceifa.co.uk/pension-sharing/where-is-my-pension-sharing-order
This guidance can be found on the NHS Pensions website “Pension sharing is where a court serves a Pension Sharing Order on the Scheme. When the court orders a pension to be shared, the former spouse or civil partner is allocated a percentage (up to 100%) of the member’s benefits at the effective date of the order. The court order will be sent to NHS Pensions who will acknowledge and implement it as directed.”
In my experience often the court does not send the pension sharing order to the scheme (or it is delayed) and therefore, problems can arise when this paperwork goes missing or is not acted upon.
Often it is left to the individual. I work with clients to ensure that pension sharing orders are drafted correctly in the first place, are appropriately stamped and approved are implemented in a timely manner.
If this is an issue affecting you please contact us.
Tags: Consent Order, Court paperwork, Pension, Pension Sharing, pension sharing order, Pension Sharing Orders | Posted in Pension Sharing Order |
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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 September 24th, 2010
The site has just had a makeover and we would welcome your comments. Let us know what you think and whether there are any areas you feel can be improved. Comments to advice@thedivorceifa.co.uk
We are seeing an increase of instructions month on month as issues such as the CETV embargo in the Public Sector take hold (see our previous blog on this).
We offer a free initial consultation and are happy to provide you with initial comment on a free, no obligation basis. So why not try us out. You can contact us for free on 0800 092 1229 or by email on advice@thedivorceifa.co.uk
Recent examples of our work include:
The quadrupling of the amount of state pension being paid to my client.
- Successfully arguing that a cash equivalent transfer value should be £140,000 and not the stated £90,000.
- Advising on 10 pension schemes within a divorce and reducing the costs of the actuary by £500 and implementation of the pension sharing orders by over £4,000.
So why settle for less?
0800 092 1229 or advice@thedivorceifa.co.uk
Tags: Cash Equivalent Transfer Value, CETV, CETV embargo, Divorce, Free, Free Initial Consultation, Initial Consultation, No obligation, Pension, Pension Sharing, pension sharing order, Pension Sharing Orders, Pensions, Pensions and Divorce, Public Sector, State Pension | Posted in Pensions & divorce |
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