Investing a pension

Hi,

Best wishes and let us know how you get on. If you need anything urgently please feel free to contact me.

Details on my contact in Wiki.

Regards

Phil

Well it's over. I got 60% of the company pension and 100% of the second state and the 2nd NHS pensions. xh refused to pay for the pension sharing costs, even though I had allowed him to keep the £8000 shares he/we owned at the time of separation which he still had at form E, plus I accepted 1% less than the actuarial report said would make us equal from his company pension. We went into court on this one sole issue and xh just said he'd spend the share money and judge said if he's spent it he's spent it and ordered a 50% costs order. It was then explained to me that if we took pension sharing costs out of each pot, I would be paying 100% of the two smaller pension costs and 60% of the company pension sharing costs whereas if I could raise the cash, would only pay half of all three's costs. I had to decide then and there as it was being written into the Consent Order so phoned a friend and asked her if I could borrown between £1000 - £2000 which is what the barrister and solicitor estimate as half the total costs of all three. She said yes thankfully.

I think xh came out very well on the whole thing but tbh I am just so glad to be rid of all this. My solicitor said I have to invest my pension and action the share within 4 months or the order ends and xh keeps the pensions if they are still in his funds, but having just phoned an IFA independent advisor he said that's the first he has heard of that? So who is right?

Now I need to find out whether it's best to leave the NHS pension as a shadow pension, or invest it extermally, I think the state one just gets transferred to me as pension credits. Then the big company one which is worth money, I want something safe and secure with little or no risk and will accept less interest on it because of that. The pension pot is all I have and I pay be poor now lol but I will be a more comfortable old lady

Well done - making decisions on the spot and getting a good deal.
Relax - celebrate. You did it girl.
A pension in your own name. Brilliant.
just to say straight away - "My solicitor said I have to invest my pension and action the share within 4 months or the order ends"
The worst that can happen - I mean even if you did nothing for months after the pension schemes get the pension sharing orders - is that the pension scheme will decide for you where to invest your share even that's really really unlikely .....
Your solicitor should be ashamed - you won't lose your share of the pension if you take your time over deciding what to do - I wrangled with the trustees over being kicked out for about 11 months after they got the sharing order. No harm done - no loss of CETV - in fact in my case the CETV went up by c£15k because the company had to put more cash into the pension scheme. It could have gone down though - and that's the risk - when I knew I had to transfer out I put it in a low cost simple stakeholder as a safe haven with "low" annual charges - 1%
I'm not suggesting you delay deliberately - just that you can take reasonable time to decide -
The pension schemes won't get the order until you've completed the Pension Sharing Annexe - your dream solicitor should organize that - one of the questions is about whether you want to stay in the scheme if you have the choice - so the NHS one will need a bit of extra thought and information.

THE NHS pension - a final salary pension - all my instincts scream leave it where it is - but you need to look at what the NHS scheme does with pension credit members.
Cheers Maysie

I've looked at the NHS pension website about pension sharing :
www.nhsbsa.nhs.uk/Pensions/Documents/Pen..._on_Divorce_FAQs.pdf

"Q What about a member’s former spouse?
A The former spouse will become a pension credit member and any pension benefits as
a result of a Pension Sharing Order will remain in the NHS Pension Scheme. They will
not be able to transfer these benefits out of the scheme, transfer any benefits from any
other pension arrangement into the Scheme, or purchase additional benefits."
Looks as though you have no option but to stay in the NHS scheme?????
Just found this:
www.thedivorceifa.co.uk/tag/pension-sharing-orders
Costs for NHS implementing about to double, Jan 2011
Good reason to get this one done asap

That is very useful info maggie, thanks!

Hi,

Well done and it sounds like a celebration is in order.

Maggie has covered a number of the points very well and even pointed you in the direction of one of my blogs. Yes, the NHS is going to increase the implementation charge substantially so there is a huge incentive to get this completed before 1 January 2011.

In addition, the NHS scheme will only allow you to have an internal defined benefit upon implementation. There is no external transfer available here.

Just to clarify the implementation process the four months relates to the timeframe the schemes have to implement the pension sharing orders (annexes)once all of the necessary paperwork is received.

This paperwork does not just include the pension sharing orders and consent order but also (usually) birth certificates,discharge forms and confirmation of where you want the transfer paid. In addition, the implementation fees must be paid before they will start to implement.

You can find further information on this issue and what can go wrong on my site. Lots of things I am afraid!

Again, Maggie is right that the order does not just cease if you do not implement it within the 4 months period. I have implemented one that was 12 months out of date! Of course it is in your interests to get this implemented as soon as possible from a risk point of view (xh's death!)

The second state pension will be paid across as a credit and this will become a defined benefit income. You should also reapply for your basic pension (BR19) as you may be entitled to an uplift on this income.

So to summarise it would seem like you have two defined benefits - NHS and State Second Pension (to add to your basic state pension). These will pay you a guaranteed income. And, you will receive an external transfer from the company pension which can be used to provide (perhaps) a more flexible income in retirement.

It will be important to decide what income you need from this pension and how much risk you are prepared to take.

If you need any further advice on this matter, please post again.


Regards

Phil

Sorry, new questions.

I take it the state 2nd pension which will be transferred to me as pension credits, the cost of the implimentation will be met in cash by me and xh. So am I right in thinking that will all be sorted by the state pension scheme, just giving them a fee and I don't need an IFA or anyone to sort it for me?

And same really with the NHS pension?

So, I only need an IFA person to deal with the company pension? And how is he paid, as in does he

1) receive a fee from the pension provider but not from you?

2) charge you a fee which is usually a percentage of the pension pot?

and 3rd) question, are there any annual ongoing charges or once invested does your pot remain in the fund incuring no further fees?