company pensions

Does anyone know what is the likely status of my stbx's ill health pension where she has had it topped up by her company a few years ago when we were together as she is unable to work. Am i entitled to this portion of her pension or is it excluded from the pension pot. I am well below retirement age and can work.

Hi,

Assuming it is not related to any form of compensation then the whole of the pension should be taken into consideration.

There are a number of things to consider when dealing with an ill health pension in payment and any transfer value quoted. This may help.

tiny.cc/FL4Do



Please note: Although I am a Resolution Accredited Independent Financial Adviser my comments are given here as general guidance ­­­­base­­­­d on the (often limited) information available and does not constitute financial advice. They should not be seen as a substitute for detailed financial and legal advice.

I have been told tht the portion added by the company as a top up to make t a full final pension would be excluded.

Apart from the attached do you have any basis for your view?

Many thanks

It's a question of "shareable rights" aka "relevant benefits" ?
LGPS advice includes this section:

"7. Regulation 2 of the pension sharing (Valuation) Regulations 2000 defines
"rights under a pension arrangement which are not shareable". These include
· widows, widowers and dependants pensions (or annuities) in payment following the death of a person with rights under a pension arrangement;
· a bare EPB (equivalent pension benefit) i.e. where a member who was in
non-participating (contracted-out) employment at any time between 1961
and 1975 took a refund of contributions but no PIL was paid and the only
benefit left in the LGPS to be paid is a bare EPB;
and
· "any rights which do not result in the payment of relevant benefits".
8. Regulation 1 of the Pension Sharing (Valuation) Regulations 2000 defines
relevant benefits as having "the meaning given by section 612 of the Income
and Corporation Taxes Act 1988".
9. Section 612 of the Income and Corporation Taxes Act 1988 defines relevant
benefits as "any pension, lump sum, gratuity or like benefit given or to be
given on retirement or on death, [or by virtue of a "Pension Sharing Order"
or provision,] or in anticipation of retirement, or, in connection with past
service, after retirement or death, or to be given on or in anticipation of or in
connection with any change in the nature of the service of the employee in
question, except that it does not include any benefit which is to be afforded
solely by reason of the disablement by accident of a person occurring during
his service or of his death by accident so occurring and for no other reason".

Are we all clear???
Ah those lovely Regs.

Apologies for the weird layout - looks normal in the preview but scatters when posted.

Thank you for this.

I have read it and reread it and I would interpret this as the pension top up for ill health falls into the excluded benefits as it was on retirement. Would you agree?

I think it supports the advice of The Divorce IFA :
Any payment or pension resulting solely by reason of the disablement by accident of a person occurring during his service or of his death by accident so occurring and for no other reason is not a relevant benefit and is not shareable.
Was the lump sum top up compensation for disablement caused by injury at work?

No a terminal illness