I have posted severally regarding pensions.My STBx is insisting on an actuarial valuation of pensions.This was not agreed in the FDA.We both have CETV values that are nearly equal.Can I refuse to fund the actuarial report request as I do not have the funds and I am trying to borrow some money in order to get representation for the final hearing.(dates awaited).Awaiting for your very helpful comments.Thanks.
Without knowing the types and CEVs of the pensions it is hard to advise. If, as suggested in the thread title, an NHS pension is involved, these can be substantially undervalued by CEV. A pension like this simply cannot be compared with a defined contribution scheme and may well be less valuable than other defined benefit pensions.
What an actuary will be looking at is how pensions should be divided to ensure equality of income on retirement. This is what a court will normally look for.
If there is a clear need for an actuary, it is surprising if this has been overlooked on the way through. If your ex wants a joint report and you do not agree, he may need to make and application to court for a judge to order one. The judge may not agree it is required.
Thanks for your reply, the judge actually suggested this in FDR so sounds like will have to do an actuarial valuation. I just have to get the funds. What exactly should I be requesting? an equality of income on retirement and/or equality of capital??I need a Clean Break??
The usual approach would be equalising pensions on retirement. This may include calculations for different retirement ages. The calculations may also include separate figures to equalise income from pensions accrued during the marriage /relationship and outside of it.
There would need to be an agreed joint letter of instruction. You would need to be mindful of the time frames for producing such a report.
If this is an issue, I am rather suprised it was not dealt with at FDR. That's when an actuary's report would usually be ordered.
Are you able to tell us a bit about the pensions - who they are with, the CEVs and how long they have been paid into vs length of the marriage /relationship.
Many thanks for your very helpful response.yes details as below.
Applicant is 40 yrs old and has NHS final salary scheme CETV£200 k.This consists of i,1995 scheme to be paid out at 60 years £8420 per year and a lump sum of £25k.
ii,2015 scheme to be paid out at 67 yrs £7140 per year.
The respondent is 50 years has a defined benefit UNICEF Pension that is currently estimated at £155000 withdrawal settlement figure.
The benefit is however expected to be £20000 per year to be paid from 62 yrs if age.
Both pensions were accrued during 16 years of marriage.
How likely will the respondents' acturial pension value vary from the applicant bearing in mind that NHS CETV figures are apparently undervalued??Just enquiring as I await for quotes from actuarial valuers?Any recommendations will be highly appreciated too.
The benefits that the pensions will pay on retirement give a bit of a clue as to the true value of the pensions. Because your ages and retirement ages are different you really do need an expert calculation. It would appear on the face of it that his pension is even better than yours given what it will pay. IME A pension income of £20k a year would normally require a defined contribution fund of around £400k+.
It isn't that simple though, there are all sorts of things to consider like whether you can share in the scheme or funds have to be transferred out. That's why actuaries are expensive 😁.