Persion split ?

50plusabit

I'm asking this on behalf of my sister-in-law (ex). My brother is a prison office, he is due to retire at 55 which is in 12 months, with an index linked pension and a gratuity. They got a divorce a few months ago, and part of her settlement was she received 50% of his pension. She is not thinking straight at the moment and has started to panic over the way the financial world is going. I said I would try and find out what is what.
Firstly....I believe she knows that she can not draw the pension until she is 60, but is worried that it will have lost value as things are going.
Although at the moment my brother is not in my good books, how will this situation with his pension and gratuity, I am slightly concerned as I loaned him a substantial amount of money 3 yrs ago, which was to be paid back when he retired.
Thanks in advance for your help.

Day_Trader

I don't know much about Persions but I can help with your pension query!
The prison office scheme is a civil service scheme which means he will get a final salary pension based on his earnings. The risk for this scheme is borne by the govt so the pension he gets will not fluctuate in value whatsoever in that respect so she need not worry.

EdInvestor

50plusabit wrote: »

I'm asking this on behalf of my sister-in-law (ex). My brother is a prison office, he is due to retire at 55 which is in 12 months, with an index linked pension and a gratuity. They got a divorce a few months ago, and part of her settlement was she received 50% of his pension.
Firstly....I believe she knows that she can not draw the pension until she is 60, but is worried that it will have lost value as things are going.

The law has now changed so she may be able to draw the pension earlier, she should check.

Debt_Free_Chick

She should have had full details of how this is going to work. With many pension schemes, on divorce, the ex-wife is given a lump sum of money to invest in her own private pension plan.

However, many of the Public Sector schemes don't do this. Instead, they make the ex-wife into a special member of the pension scheme and pay her a pension when she gets to the scheme normal retirement age. Other options that "normal" members get, like early retirement, might be restricted.

So, it is likely that your brother has had to give some of his pension up, so his ex-wife can have her own pension when she reaches 60.

The current "financial turmoil" will have had no effect on this at all. But your brother's pension is going to be less than it was previously, as he's had to give some of it to his ex-wife.

farhad1965

Day_Trader wrote: »

I don't know much about Persions but I can help with your pension query!
The prison office scheme is a civil service scheme which means he will get a final salary pension based on his earnings. The risk for this scheme is borne by the govt so the pension he gets will not fluctuate in value whatsoever in that respect so she need not worry.

I think a prison pension may be a persion :rotfl:

50plusabit

Thank you everybody. When she sorts herself out a bit, I will try to find here paperwork, but it is good to know that her pension is safe, and is as his pension that it is a final salery thing, am I correct in thinking this?
Yes his pension will be 50% less, which is fair as she brought 3 kids up, and had to endure him for 25yrs, may sound strange, he is my brother, but he has no excuse for his behaviour.
Again thanks for the help. I need to find some paperwork to get a address ect.

Day_Trader

50plusabit wrote: »

but it is good to know that her pension is safe, and is as his pension that it is a final salery thing, am I correct in thinking this?

Yes in short! As others have alluded to you just need to check all the paperwork to see how it will all work. Glad to be of help.