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Teachers Pension CETV

  • Shirtoffmyback
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09 May 17 #492026 by Shirtoffmyback
Topic started by Shirtoffmyback
Hi Eveyone,

Does anyone have experience of getting an actuarial report on their ex's final salary public sector pension. In this case my ex's pension is a teachers pension with a CETV of £65k. The express valuation is valuing the pension at £190k +!!

My ex will not accept this and as such i will need to get a court approved actuarial report if I want to progress this matter further.

Has anyone been in a similar position? Did the actuarial report considerablely exceed the CETV provided? For those who used was your express valuation in the same ball park as your actuarial report?

Thanks in advance for any help

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09 May 17 #492030 by dukey
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65k to 190k seems a huge stretch, though i have seen this before, not a fan of express valuations at all.

If the CETV is 65k is it really worth paying an actuary?, your talking 1k+.

Much depends on your age of course and length of marriage, but even so a report on a pension with CETV of 65k seems excessive to say the least.

Is it really worth 190k?, i`d eat my hat if an actuary agreed.

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09 May 17 #492035 by Shirtoffmyback
Reply from Shirtoffmyback
Thanks dukey.

I agree £190K looks too high, but when I check it against my final salary pension it looks reasonable -

i.e. my final salary pension from M&S has a CETV of £60K and will pay £1.8K per annum on retirement which is 30 X income.

Her teachers pension will pay £6K on retirement, a multiple of 33 gives £198K......

The current CETV of £65K only gives a multiple of 11.

I'm aware the above is very crude, but the value lines up with the express report.

43 an 44 married for 16 years

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09 May 17 #492041 by dukey
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I am far from an expert in pensions, just saying.

If there is a disagreement over asset division the court decide what should happen - i doubt any court would order a formal actuary report with pensions at your age with CETV`s that are actually rather low.

Your both rather young meaning the pensions are of little use for the next 20 odd years, pensions don`t have a liquidation value until in payment, even then the tax man will take a huge chunk, as much as 50%, so they are not a liquid asset like a house or car ect.

Don`t get too caught up in what they are really worth, the numbers you suggest sound odd, as do the calculations.

Pensions with a CETV of less than 100k with people below 45 tend to be worth not huge sum.

A pension that pays £1800 per year is worthless in the calculation of asset division as of now, hers will pay 6k per year in donkey years time - its small beans, focus on the actual assets you have, the pensions are tiny in real terms.

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23 May 18 #501828 by ThereWillBeLight
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Hi,

Just wondered what the outcome was. I'm interested as I'm in a similar position and am unsure of the true value of the CETV for a final salary pension of a similar size.

Thanks

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24 May 18 #501834 by Shirtoffmyback
Reply from Shirtoffmyback
At the FDR the judge was dismissive of pensions and the small value of my business (£50K). She just wanted to focus on the housing needs of both parties for the sake of the children.

I had been saying to my ex for 2.5 years we should square the pension and business away and just focus on dividing the equity in the house...….


An actuarial valuation of the pensions was carried out but it was clear from the start that the actuary selected by my ex was not going to stray too far from the scheme valuations. If you do use an actuary try and use Peter at BDM. you can get an idea of the schemes values using there express valuations.

Needless to say we didn't settle at FDR and we're now off to a final hearing! Happy to have a chat if it helps?

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30 May 18 #501965 by ThereWillBeLight
Reply from ThereWillBeLight
Thanks. So I guess it depends on the judge and their decision on whether it's included or not? bit of a lottery.

How is the pension actuary selected? If I left the choice to stbx, the selection is very likely to be one who will intentionally undervalue it.
An idea how close to the full actuarial report would the express report be (in terms of value reported)?

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