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Rule of thumb for value of pension for offsetting

  • humdrum
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19 May 12 #331565 by humdrum
Topic started by humdrum
I have a civil service pension, somewhat small because I have been working part-time since children were born (11 years now).

I did get a CETV valuation recently, not sure how this stands given the changes to civil service pensions.

Am about to start dealing with financial matters. My barrister for the children case mentioned in passing that as a very rough guide as to what proportion of that I should actually offer to achieve a Clean Break and avoid pension attachments, that I should divide it into 2 and then divide by 3.

Can any one comment on whether this is a good basis for negotiations?

Many thanks.

  • MrsMathsisfun
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19 May 12 #331570 by MrsMathsisfun
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Does your stbx has a pension?

Not sure of the reason for the divide by 2 and then 3. Is this to achieve an amount for offsetting against other assets or is a way of dealing with how contributions to final salary schemes work, eg number of years rather than a pot of money?

ps just because the CETV figure doesnt appear to be much doesnt mean its not worth alot. My partners ex''s nhs cetv was £50k but to achieve the same benefits my partners money purchase scheme would need a pot of money worth £150k!

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19 May 12 #331575 by humdrum
Reply from humdrum
stbx has no pension.

The advice I was given was so that pension value could be offset against other assets such as house and savings.

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19 May 12 #331578 by MrsMathsisfun
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How much of an offset that will be given against other assets will depend upon the different factors such as age and the needs of the other person.

If pension cant be realised until sometime in the distant future it will be of less valuable than something that will be realised soon.

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19 May 12 #331592 by humdrum
Reply from humdrum
Your point about the pension not being realisable until a future date making it of less value is the reason for giving it a lower value alongside the value of the house and savings. That is why the barrister mentioned that forumula for adjusting the value down. My problem is I can''t remember exactly what she said it was.

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19 May 12 #331595 by dukey
Reply from dukey
There is no formula and dividing by two then three will not give a worthwhile indication, the pension is a small part of the big picture, much will depend on the type of pension and how old you both are.

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