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NHS CETV

  • Irungu
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27 May 21 #516823 by Irungu
Topic started by Irungu
Dear All,

Could someone comment on CETV undervaluation? In particular the NHS CETV.I have tried to contact BDM but the company no longer offers the express estimate service? Any ideas are welcome. Many thanks.

Kind Regards,
Phylis

  • mirage63
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27 May 21 #516827 by mirage63
Reply from mirage63
I've done a lot of reading on this subject as my partners ex has a final salary NHS pension.

When it is valued it is backdated to 31st March and is calculated on the length of service at that point in time rather than on the total years of service at the time they are due to retire which should be the Normal retirement age, and therefore is undervalued. If you get the CETV and then get a pension actuary to value it on an equalisation of income basis it will reflect all of the furure years of service and all of the associated benefits and is nearly always a higher valuation. There is a cost to getting this pension report and it can take 3-4 months but clearly worth doing in order to get a fair share imo.

I also wanted to contact BDM for an express value in order to try and convince my partner what a bad deal he was getting by just adding his pension and her final salary pension together and dividing in two and sadly they no longer seem to exist.

I am still trying to convince him and it has caused me some heartache as her NHS pension income on retirement will actually be higher than his yet he is currently having to give her a quarter of his pension due to the way hers has been calculated.

Look online to see if you can find a actuary and ask a few questions or get advise from a knowledgeable solicitor (half hour free meeting) to make sure they know about final salary pensions and pension reports based on equalisation of income, as I don't think Wikivorce allow recommendations.

NHS pensions are calculated on 1/80th of the best of the final 3 years salary X years of service, if in the 1995 scheme. So if they are a long way from retirement there will be many years on increasing earnings left out of calculations There is a 3X lump sum and the pension is index linked and none of this gets reflected in the CETV.

There is a search forum option on here, so type in NHS pensions to read more.

I hope that helps

Good luck!

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27 May 21 #516828 by mirage63
Reply from mirage63
I missed out mentioning the generous spousal benefits athat re also lost on divorce. My partner has lost a 50% pension payment for life in the event of his exes death and that is also not reflected on the CETV clculations.

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27 May 21 #516830 by Irungu
Reply from Irungu
Thanks for your helpful reply.

Kind Regards
Phylis

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28 May 21 #516831 by hadenoughnow
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There is a search function in the forum menu 🙂.

The annual benefits statements for NHS pensions give a hypothetical annuity value alongside the fund value. This indicates how much it would cost to buy a similar level of retirement benefits on the open market. It is a useful figure, especially when you are comparing the value of an NHS pension with a defined contribution pension which is worth what it says on the tin.

Hadenoughnow

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31 May 21 #516855 by Irungu
Reply from Irungu
Many thanks for all your responses.I really do appreciate it.

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10 Jun 21 #516938 by Irungu
Reply from Irungu
Dear Hadenoughnow,

Does that mean that this hypothetical value would be the likely estimate if a a pension valuation is done using CETV? My pension would be valued at 3 times which means that I cant offset with the capital in the matrimonial pot??
Totally confused!

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