final salary and pension in payment

As I understand it, if you went for a pension share you would not het you 'share' of the pension until you were 65, whereas his pension would reduce immediately. If you want to retire ay 60 wouldd you have enough to live on for those 5 years? you still have 4 years to contribute to your pension whereas he cannot contribute any more. Could you maybe ask for the 60K that he has in savings and put it into your pension scheme as additional voluntary contributions? Or as separate personal pension? Or it might be better if he paid you maintenance but then you couldn't have a Clean Break.

His pension's not an NHS pension Rosarie?

He was able to take an unreduced pension at an early age - if you did share that pension would you be able to take your share into payment immediately - ie what rules does his pension scheme apply to pension credit pensions resulting from pension sharing on divorce?

Hi Maggie

Good points but I believe that the husband is an NHS mental health officer, in which case he has earlier retirement options than those generally applying under the NHS scheme. My understanding is that as a pension-credit member of the scheme the normal scheme retirement rules would apply.

This is a good example of why I so dislike the phrase “shadow membership” in a pension sharing context. The shadow is often distorted by the facts and could easily mislead.

Peter

rosarie wrote:

W 56yrs. H 62yrs

W. CETV 203,051.38 (NHS final salary)

H. CETV 1,099,000.00 (Final Salary Pension in payment).

W.Monthly salary Gross 3059.52 Net 2146.96
H.Monthly pension Gross 3705 Net 3031

Did not work for 1yr. Now works part-time. ? could work full time.

H. able to retire @ 55yrs (2002)Private Hospital Final Salary Scheme (mental health officer status). Chooses not to work since.

H. arguing that he completed his pension contributions and was fully paid up in 1996. I am therefore only then entitled to a share of contributions from 1982 (cohabiting) to 1996.

I have increased my hours to full time in a physically and emotionally demanding job and wish to retire @ 60 (state pension @64).

I assumed his pension would be something like Nuffield Hospitals - I recall they closed their Defined Benefit scheme a while back?
If it is NHS though their rules mean a pension for an ex-spouse at age 60 earliest and would produce the dreaded gap?

Rosarie wrote:
"H. arguing that he completed his pension contributions and was fully paid up in 1996."
Assume that means he reached the HMRC limit - "lifetime contribution"?
Seems a long time to be barred from making any further pension contributions?
Any SERPS/second state pension?

offsetting - swapping your share of the pension for another asset -leaves you vulnerable to reductions in the amount offered.

The poster has already put up though that she's NHS and he was a private hospital?

Therefore it would depend as to the rules on the private hospital's scheme rather than the NHS surely.

There's also the issue that while he's now retired as far as his pension is concerned and therefore no more can be added to it, her's is not as she is still working and even if she retires at 60 as she plans still has a further 4 years of contributions into it.

T

It seems to me that this is a no brainer.

An actuary is needed to calculate what share of the joint pension fund Rosarie needs in order that incomes are equalised on retirement.

Yes it would mean his income is reduced - but it is not his money - it is a joint asset.

How exactly things are sorted eventually will depend on what the actuary works out and whether the share is inside or outside his scheme. It may be that rosarie can opt for a smaller share in return for more equity if that is appropriate.

My back of a fag packet calculation has the existing pension split at 16% her and 84% him. However what is not clear is whether the CETV value given was pre him taking the lump sum .. and CETV is not what is used for a pension in payment ..

Assuming it is an existing fund value and that there are no major differences in the way the values would pan out (both final salary), very roughly I think it wd mean rosarie gets circa 40% of his pension pot ... which would mean (according to my limited brain) that his net income from pension would be pretty much the same as hers ....

But you would need a grown up to do the proper sums before even thinking about agreeing to anything ..

Hadenoughnow