Military Pension Sharing Order

Jogging23

Hi,
I’m hoping someone here can help me understand a pension sharing order query under AFPS75.

If I receive a PSO as an ex spouse (for ease let’s assume a £10k a year pension and I receive 50%) I know it gets put aside in my own ‘pot’, I am 45 currently and the standard age I can receive my pension share is 65. My former partners pension comes into immediate payment when he leaves service (assume this year) and will be in payment 20 years before I receive my share. 

My question is does my PSO just get valued as the 50% now (£5k) and then updated by CPI each year and that’s what my pension would be at 65, or does it also take into account that the scheme would pay an immediate pension to my ex   - i.e will mine be valued as if I’ve had 20 years of £5k per year?

thanks

Silvertabby

Once the PSO has been implemented your allotted 'share' will be placed into an account under your own name, and you will be a 'Pension Credit Member' in your own right.  

Your deferred pension will increase by CPI each year, and won't be reduced in any way because your ex is able to draw his benefits in his 40s.  That (ie NRA of 40ish for service member, 65 for spouse) will have been factored into your amount allocated.  Or should have been.

I'm sure that you are aware that you will be able to access your benefits from 55/rising to 57, but they would be subject to a hefty reduction for early payment 

Also, these pension credit funds can't be transferred out under to another scheme, even another public sector DB scheme.

Jogging23

Thank you, that makes sense. It’s trying to work out what the income looks like so much later down the line at 65 for me (assuming I don’t take it early). I think on our current calculations my share would equate to about £100k being put into a pot for me. No idea what that might eventually pay per annum when I get to 65.

Silvertabby

You won't have a 'pot' of £XXK, you will have the equivalent of a DB pension promise.  Once the PSO has been implemented you should receive a form of deferred benefit statement.