Odd Pension Values
I spotted an interesting pension ombudsman case last week which is worthy of note. If you are interested you can read the full article here The numbers here are quite small but the lesson here is that with a SIPP/SSAS other stuff can be going on that serves to misrepresent the true asset value of these […]
Capital Value losses and gains on Pension Sharing
How can anyone consider pension sharing a defined benefit/salary related pension without knowing something about capital values? In this context I mean independent capital values or fair values calculated by an actuary. Cash Equivalent Transfer Values are NOT intended to be fair values and are often anything but. So called replacement values are a crude […]
Pension Sharing – 10 years of bedlam
I’ve been an IFA for twelve years and for the last ten I have been implementing pension sharing orders. It hasn’t been dull. From the lady in 2012 who reached down into the bottom drawer of her bureau to pass me a “ready to go” but unimplemented annex dated from 2004, questioning whether it was […]
Maybe this isn’t dyed in the wool?
You may not be familiar with the Martin-Dye v Martin-Dye case but it has been a very important one in relation to pensions on divorce. In the closing statement of that case Lord Justice Thorp said, “Pensions in payment, being different in kind to other available assets, should have been apportioned by means of a […]
High Risk/Low Risk Pensions
I am often asked which pensions are potentially the most risky when it comes to pensions on divorce and particularly, pension sharing. Another common question is at what value can all pensions be ignored? I always think this is a very subjective thing and very difficult to give a standard answer. Instead I prefer to […]
Pension Sharing – Is Hallam alive?
This week I was shocked to learn that the Hallam pension formula might not be as extinct as I had previously thought. To the uninitiated this is where the amount of the pension share value is placed on the pension sharing order in monetary terms (see image 2 below) or other instances written as “that […]
Local Government Pension Scheme – Huge change to Pension Sharing Credits
The Local Government Pension Scheme changed from a Final Salary basis to a Career Average Revalued Earnings “CARE” basis for pensions accrued from 1st April 2014. This means that over time the cost of providing defined benefit pensions should reduce as the final pension is calculated based on an average earnings over someone’s career rather […]
Groundbreaking Pension Sharing On Divorce Study
The first detailed study into pension sharing on divorce since its introduction in England and Wales in 2000 has recently (March 2014) been published by Hilary Woodward and Mark Sefton of Cardiff University. It is accessible via orca.cf.ac.uk/56700 and the Key Findings at orca.cf.ac.uk/56702. The study was designed to provide an insight into when and how pensions […]
Dodgy Pension Expert Reports
As part of the work I do I am often contacted by solicitors, and clients going through divorce directly, to look at pension reports and to comment. The worry I have is that from this relatively small sample of what must actually be out there, is the number of basic errors and the poor methodology […]
Pension Sharing FAQ – When is a Cash Equivalent Transfer Value the right value to use?
Technically speaking the cash equivalent transfer value (CETV) represents the expected cost of providing the member’s benefits within the scheme. In divorce settlements, thought needs to be given as to whether the CETV is the most appropriate method of valuing the overall pension benefits. Consideration needs to be given as to whether the CETV accurately […]
