Quoting pension values on Form E for a divorce

TWOC

I am going through a divorce and both parties have prepared draft Form Es.

I am aware that my estranged wife’s annual pension projection is ~15% higher than mine.

However, for the "cash equivalent value” (on which divorce financial settlements are usually based), my “pot” is double that of my wife.

The only notable differences in circumstances are: 1) she is six years older (53), and 2) she has a final salary scheme and mine is money purchase

Aside from any marginal calculation errors, what might be the cause of this significant discrepancy?

Any help appreciated.

SonOf

Aside from any marginal calculation errors, what might be the cause of this significant discrepancy?
Totally different types of pensions with totally different ways of working out the transfer value.  
Yours is based on investment values.  Hers is based on a monetary equivalent of the cost of the benefits accrued.   DB schemes are more valuable than DC schemes.
I am aware that my estranged wife’s annual pension projection is ~15% higher than mine.
Projections on money purchase schemes are largely meaningless because they rely on assumptions which are often very pessimistic and include a deduction for inflation use an annuity rate which most people do not use.

swindiff

So you would expect the wifes CETV to be higher, not the other way round??

comeandgo

When my husband divorced, he had final salary pension from years back and it was sitting idle, he had stopped working for the employer twenty years previous.  When he reached pension age and lump sum was paid out to him it was more than the total value used on the divorce settlement six years previous. His ex wife's solicitor had accepted the value given by the pension company but I don't know how it was valued but it was certainly many many thousands short of value when it was paid out as lump sum and monthly pension.

TWOC

SonOf said:

Aside from any marginal calculation errors, what might be the cause of this significant discrepancy?
Totally different types of pensions with totally different ways of working out the transfer value.  
Yours is based on investment values.  Hers is based on a monetary equivalent of the cost of the benefits accrued.   DB schemes are more valuable than DC schemes.
I am aware that my estranged wife’s annual pension projection is ~15% higher than mine.
Projections on money purchase schemes are largely meaningless because they rely on assumptions which are often very pessimistic and include a deduction for inflation use an annuity rate which most people do not use.

I'm aware I can request a different form of pension evaluation if the CETV does not offer a fair comparison. 

Do you know what I could request that might better compare a final salary with money purchase pension?

TWOC

swindiff said:

So you would expect the wifes CETV to be higher, not the other way round?

Yes. And certainly my CETV being double seemingly puts me at a massive disadvantage.

Dox

swindiff said:

So you would expect the wifes CETV to be higher, not the other way round??

Only final salary (or other forms of defined benefit, such as CARE schemes) have CETVs. Money purchase schemes just have 'transfer values'.  The major determinant isn't the type of pension, but the benefits you've built up in it, so you can't give a general 'one would be higher than the other' reply.

WillowCat

Normally in these situations you would ask the judge to order that an actuary be jointly instructed to crunch the numbers.  Certainly worth it if the pensions are an important part of the marital pot.  (If you're not at the point of court then you can negotiate between solicitors for same).