Posted January 3rd, 2012
We are experiencing a higher than normal level of calls in respect of these pension schemes, and in particular, the issues regarding drawing benefits early.
The armed forces scheme has taken a welcome stance which is that pension credit members can draw benefits at age 55, rather than age 60 which continues to be the case under the Police Pension Scheme and the Fire Service Pension Scheme. Albeit there is a reduction for early payment!
It is hoped that at some point, all of the schemes will draw into line with each other, however the current guidance appears to be that this is unlikely.
If you are experiencing difficulties with your pension settlement in any of these pension schemes, why not get in touch for a chat on 0800 092 1229 or email firstname.lastname@example.org
Posted October 4th, 2010
Whilst the NHS call centre and website are saying it could be up to next April before the new cash equivalent transfer values (CETVs) / Cash Equivalent Of Benefit calculations (CTVs) commence again, I understand that the new CPI factors are now starting to become available for the Public Sector Schemes.
The Fire Service and NHS pension scheme have confirmed receipt and they will be testing their systems over the next two weeks. The other schemes – Local Government Pension Scheme, Police Pension Scheme, Armed Forces- are expected over the coming weeks.
It is hoped that the end of this embargo (see here) will be soon and we can return to normal with requesting public sector pension transfer values.
If this is something that is currently affecting you, please feel free to contact us.
Posted October 1st, 2010
This week I was contacted by a very concerned lady whose ex husband had not paid the implementation charge following their divorce and she wanted to know what she could do. Often, at settlement it will be agreed that 100% of the costs are paid by the other party and this will be seen as a small victory.
The implementation period will not start until all of the paperwork and the pension sharing order charges are paid. So it is important to get the charges paid as soon as possible to avoid delays. When you are relying on someone else to make payment this can be problematic.
The truth is that there is often very little that can be done as the costs of going back to court to enforce the pension sharing order can often be prohibitive. Inevitably, the only option is to pay the costs themselves.
So perhaps, prevention is the key. It is possible in some circumstances for the charges to borne from the cash equivalent transfer value. Alternatively, it might be appropriate to look to share the pension schemes which do not bear any charges. Yes, they do exist.
Here are some examples of the level of pension sharing costs involved:
UBS – £2,250 plus VAT
Police Pension Scheme- £400 plus VAT
Standard Life – £250
AVIVA – £0
With such amounts being charged and likelihood to rise in the future (see blog here) it is important to consider what the pension sharing order costs will be before agreeing the percentage split. Or deciding to pay these charges.
If this is something you would like further information on this please contact us.