Final Salary Pensions

Tiggy

Nigel is out with clients today, so if you do not mind getting a response from the monkey rather than the organ grinder, I will respond.

The technical answer is that it will depend on what type of pension schemes they are and how they will implement pension-sharing orders. We would expect to have the share done in whichever way has the least prospect of causing financial harm. Without being too glib about this, given the relative size of the pensions and the fact that, if I have understood the circumstances correctly, around £11,800 of pension value has to be redistributed from him to you there is a risk that implementing a pension share could inadvertently cause financial harm. We estimate that the cost of making a pension sharing order on the average defined benefit pension scheme will be between £2,000 and £3,000, with only a modest proportion of this going in actuarial fees. This looks to me to be an exercise with marginal and debatable financial justification, spending £2,000-£3,000 to redistribute £11,800. If it is not too late, you might like to consider adjusting the offsets instead.

Peter.

Am interested in this as i have agreed to accept 100% of ex's NHS pension approx 72k.
He was down as single but had in fact been married a couple of months after he started it (pension approx 27yrs old now).
My solicitor felt this should have an actuaries report but i had heard this costs thousands (also my solicitors costs) and i spoke to a representative for the pension fund they told me as it was a transfer to me due to divorce they would have valued it on that (being married).
I have the absolute and the consent agreement has to be finalised by the end of this month. Do you believe I have lost out on what its worth and i feel time is against me anyhow now.He is a dentist and has not done much NHS work and in fact is not seeing any NHS patients now.
I was told i couldnt dispute it later.
Thank you for any advice.
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Hi Peter, I am completely baffled now!! Sorry I probably have not explained properly. I have a pension of approx 70k (NHS), my stbx has a private pension of approx 23k. We have a house with approx 100k equity. I have agreed for him to have 37.5% of the difference in our pensions in cash from the equity of the house which is roughly 18k, as he needs cash to fund a house purchase. What I would like to know is do we split the equity 50/50 then I give him 18k, or is the 18k taken of the equity pot and then the rest split 50/50? I want to keep my pension fund intact if possible. My husband has not told me how much his SERPS/ 2nd state pension is worth, but I am awaiting his form E so hope it is on there, althpough dont plan to give him any less even if that is worth quite a bit. Hope I havent confused you more
Tiggy

Hi Tiggy,

Sorry if I have managed to confuse you as much as myself. I did completely misunderstand the proposals but I believe that I have it now.

Am I right in thinking that the house will be sold to release the equity?

Peter.

Yes thats right

Hi Flower,

I hope that I do better with your post than I did with Tiggy’s (come back Nigel, all is forgiven).

You have not said what the basis of the settlement is that led to you getting 100% of ex’s NHS pension, presumably he is keeping other assets, possibly including other pensions. From what you say, it sounds as though you are getting 100% of his NHS pension as a pension sharing order. Have I understood this correctly?

Peter.

Tiggy

There is no compulsion or justification in disturbing the pensions in your case. I believe that the balancing should just be sorted out from the proceeds of the property sale. (sorry again for making such hard work of this for you).

Peter.