I've just been told that any part of an occupational pension paid by the Government - usually called Protected Rights? - which is transferred to an ex-spouse on divorce is called safeguarded rights and can't be used for a tax free cash lump sum.
Can anyone confirm this?
I don't know what the usual ratio is - in my case the safeguarded rights are about one third of the CETV.
Not very clear that - sorry.
Since A-Day on 6 April 2006 the income from the protected rights portion of a pension fund can be taken as a 25% tax free lump sum - but not apparently if you get the protected rights portion via pension sharing on divorce - you can't take any of the protected rights [called safeguarded rights if you get them from pension sharing] -as tax free cash.
The CETV I got didn't show the amount that was safeguarded rights/not available as 25% cash and until yesterday no IFA has ever said I couldn't take 25% of the whole CETV as tax free cash.
Apparently this government wants to single out people getting pensions by pension sharing for worse treatment than everyone else.