Pension sharing in divorce- where to put my slice?

atush

Why 2 different suppliers? It is just a wrapper, what counts is what the pension is invested in?

im to reduce work hours at 60 and take my civil service pension. And retire fully at 65 and take personal pension....

Is you scheme age 60 in your FS pension? you could, if you wanted, take your PP any time from age 55, but you could take it the same time as the FS one if you wanted to.

Use the PP and it's lump sum to keep you from commuting any of your FS pension or taking it early

SallyG

"I saw an IFA today. My occupational pension will not allow me to invest my slice of the Exs pension in it, and neither will the Ex's employers allow me to keep it in there. So I will have to arrange a personal pension plan."
Forgive me for butting in; I shared a defined benefit pension in 2007 and hoped solicitors/barristers/judges would finally now be making sure that this kind of information on how the donor pension will deal with your share ["discharge of liability"] - is available at an early stage when you're preparing to negotiate.
For one thing you could make sure the cost of the transfer was included in your settlement?
How much better it would be if the WRPA 1999 pension sharing legislation was amended to require the defined benefit scheme to offer the non-member ex-spouse a pension based on the existing income guarantee,adjusted to ensure no detriment to the other members of the scheme.

kidmugsy

atush wrote: »

Why 2 different suppliers? It is just a wrapper, what counts is what the pension is invested in?

Oh just suppose one supplier has bad computer trouble just when you want to take some money out, or anything else that fallible, or crooked, humans can come up with.

atush

Or the sky could fall in. Unless my pension was with lloyds or santander I would not worry.

It would be far more likely your Current acct where your pension is paid in will be your problem.

atush

SallyG wrote: »

"I saw an IFA today. My occupational pension will not allow me to invest my slice of the Exs pension in it, and neither will the Ex's employers allow me to keep it in there. So I will have to arrange a personal pension plan."
Forgive me for butting in; I shared a defined benefit pension in 2007 and hoped solicitors/barristers/judges would finally now be making sure that this kind of information on how the donor pension will deal with your share ["discharge of liability"] - is available at an early stage when you're preparing to negotiate.
For one thing you could make sure the cost of the transfer was included in your settlement?
How much better it would be if the WRPA 1999 pension sharing legislation was amended to require the defined benefit scheme to offer the non-member ex-spouse a pension based on the existing income guarantee,adjusted to ensure no detriment to the other members of the scheme.

Indeed, your solicitor (or mediator) missed a trick/didn't do their job IF they did not take into acct your pension is worth much mroe left int he scheme and I would have had any transfer out triple checked. Do it now, as it would have had to hve an IFA sign off on it.

kidmugsy

atush wrote: »

Unless my pension was with lloyds or santander I would not worry.

How could you know that you are not with the next lloyds or Santander?

atush

Well those are banks, and so the pension would not be with them?

In any case, and bank or other huge failures always hit pensions hard wherever they were. but I don't expect a pension administrator to fail in that way.

SallyG

"as it would have had to hve an IFA sign off on it."
If only ..............
In my case- and I believe this is sadly and often fatally true of all sharing on divorce carried out on defined benefit pensions - there is no requirement for an IFA to oversee the transfer - I believe the "must transfer out" situation is not strictly speaking a transfer because the ex-spouse non-member has no choice but to move his/her share elsewhere and so cannot be advised against it or choose not to do it .

atush

But there is scope for leaving DB pensions in divorce/splitting cases- it just depends on who the pension is with.

I agree that it should be law that splits should be classed so they can be left in scheme.

After all, it doesn't necessarily mean the employer is losing anything at all- they are just splitting the pot in two, and in fact might pay out less if one died early as presumably there is no spouse left to inherit.