Pension transfer dropped by 300k in 10 months

bostonerimus

This might end up being a blessing - you can do a lot worse than having a monthly cheque from a DB plan. I'm certainly glad of it as it helps me to be sanguine about the ups and downs of markets. Take a good look at the DB plan and the inflation linking and survivor benefits.

Malthusian

bostonerimus said:

This might end up being a blessing - you can do a lot worse than having a monthly cheque from a DB plan.

It is very possible that it isn't an option for the OP to join their ex's DB scheme and a CETV is all they will offer.
The ex could try to argue that as annuity rates have risen, and the cost of the OP buying a secure pension income has fallen (for the same reason the CETV has gone down), they aren't that much worse off... but realistically they may want to look at renegotiating the settlement. 
If any of the husband's other "company pensions" are DB, the CETV of his pensions will have gone down as well. If they are DC, or he has other assets (property, ISAs, shares) then as Keep_pedalling said, it may now make more sense to transfer those and keep the DB pension.

Marcon

Without knowing where in the divorce process OP is (I note she's come back and thanked Boston for their post but hasn't answered this question, which I'd already posed earlier), and exactly what options are being offered in respect of this DB pension, how can anyone comment meaningfully?

OP - if the court has already sanctioned the transfer of this pension to you, and the scheme doesn't offer you the option to keep your benefits there (unlikely if 100% of the pension is being handed over to you by order of the court), then any debate here is purely theoretical and, as usual, based on an incomplete understanding of the relevant facts - so if you want some accurate answers, do please supply the missing info. It's pretty critical!

hyubh

Malthusian said:

bostonerimus said:

This might end up being a blessing - you can do a lot worse than having a monthly cheque from a DB plan.

It is very possible that it isn't an option for the OP to join their ex's DB scheme and a CETV is all they will offer.

To up this - Blackcat1una, was transferring out of your husband's scheme the only option? Public sector schemes, and some private sector schemes, have the concept of a 'pension credit' membership, in which an ex-spouse gets their own DB benefits in the scheme. While a CETV is still involved, this would generally avoid the problem of fluctuating CETV values. (If the scheme is a private sector one, there's little rhyme or reason for whether it will do pension credit memberships or not - it's relatively rare yet I've come across small schemes that do.)

Blackcat1una

Marcon said:

Without knowing where in the divorce process OP is (I note she's come back and thanked Boston for their post but hasn't answered this question, which I'd already posed earlier), and exactly what options are being offered in respect of this DB pension, how can anyone comment meaningfully?

OP - if the court has already sanctioned the transfer of this pension to you, and the scheme doesn't offer you the option to keep your benefits there (unlikely if 100% of the pension is being handed over to you by order of the court), then any debate here is purely theoretical and, as usual, based on an incomplete understanding of the relevant facts - so if you want some accurate answers, do please supply the missing info. It's pretty critical!

Ok so apologies as I’m not used to forums as such and how they work. The divorce if final on 14 April and then the paperwork goes to the pension company who is well aware of the situation regarding dates etc and then within 4 months I’m on the understanding I get awarded 25% of the overall sum tax free and the rest will be transferred into a pension fund for myself to then draw a monthly income from. 

Not sure if that helps at all. 

Marcon

Blackcat1una said:

Marcon said:

Without knowing where in the divorce process OP is (I note she's come back and thanked Boston for their post but hasn't answered this question, which I'd already posed earlier), and exactly what options are being offered in respect of this DB pension, how can anyone comment meaningfully?

OP - if the court has already sanctioned the transfer of this pension to you, and the scheme doesn't offer you the option to keep your benefits there (unlikely if 100% of the pension is being handed over to you by order of the court), then any debate here is purely theoretical and, as usual, based on an incomplete understanding of the relevant facts - so if you want some accurate answers, do please supply the missing info. It's pretty critical!

Ok so apologies as I’m not used to forums as such and how they work. The divorce if final on 14 April and then the paperwork goes to the pension company who is well aware of the situation regarding dates etc and then within 4 months I’m on the understanding I get awarded 25% of the overall sum tax free and the rest will be transferred into a pension fund for myself to then draw a monthly income from. 

Not sure if that helps at all. 

Thank you. From what you've said, it sounds as if you currently have:

1. a decree nisi which becomes absolute on 14 April
2. a court order transferring the whole of your ex-husband's DB pension to you
3. a requirement to transfer the benefits out of the DB scheme to a scheme of your own choosing.

I'm not sure you have quite understood the what will happen at point 3. Do you know where it's being transferred to? I'd expect the transfer of 100% of the amount awarded to you to take place before you access any of the benefits - and you'd have a choice about how and when to access these. It doesn't normally have to be 25% tax free lump sum up front and then a monthly income, and that might not be the best way for you to take the pension. It really is worth double checking with your solicitor and/or financial adviser exactly what your options are.