Understanding LGPS CETV

outofere

I'm divorcing, ex has provided a LGPS CETV much lower than expected. At this point I have no statement or accompanying guidance only the CETV document. After nearly 20 years in LG there is only £60k CARE component and zero final salary component. Could it be that I'm missing a separate PDF file that has earlier contributions in as I understand it was final salary prior to 2014, or is this everything and they must have opted out of pension earlier in their career or somehow had it refunded?

Marcon

The LGPS became a CARE scheme in 2014, so your ex must have had around 6 years in the final salary section - far too long to be able to take any sort of refund of their contributions - unless they opted out.

£60K for over a decade in the CARE scheme sounds a little low, so possibly they didn't join that (or stay in it) from 2014 on, but without knowing their age/earnings, or whether they were in the '50/50' section (paid half rate contributions and built up a pension at half the rate) it's impossible to say.

That isn't something anyone here can answer, but it certainly needs to be queried and clarified.

outofere

Thank you for the quick reply. It's pretty much what I figured but good to have it confirmed. I know with some pensions you get separate reports for separate periods so wasn't sure if I was just missing a page, but sounds more like ex made a poor decision.

Silvertabby

Has he changed jobs since 2014? Is it possible that his earlier service is with another LGPS?

Exodi

https://forums.moneysavingexpert.com/discussion/comment/81915023#Comment_81915023

I think I'd still ask a lot more searching questions on the whole pension situation - a CETV of £60k sounds very low given the circumstances.

outofere

https://forums.moneysavingexpert.com/discussion/comment/81915059#Comment_81915059

changed jobs yes, but within same LG employer.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81916662#Comment_81916662

Is he in England or Scotland, and when did you get married? Under English rules, ALL of your ex's service is included in the CETV, but under Scottish rules only service from your date of marriage would be used.

If English rules, what exactly do you have? If just a figure by itself, then that may just be a standard CETV - which is a very different calculation from a divorce CETV. A divorce CETV will be a Form E, which gives a lot more information - including the date he joined the pension scheme.

outofere

https://forums.moneysavingexpert.com/discussion/comment/81916799#Comment_81916799

Thank you. It’s English rules.

I’m getting more confused by the minute! I have a “Full (non-club) Cash Equivalent Transfer Value” giving name age DoB, and relevant date, but not date of joining pension. A final salary section giving various zero value components and multipliers, then a care scheme section with member’s and widow’s components multiplied by a transfer factor.

Isn’t form E the legal form covering everything not just pensions to be exchanged as part of court process? That doesn’t seem to have pension joining date on the template either. Or is there another form E document specific to LGPS?

Marcon

Any DB pension scheme (not just LGPS) providing a CETV for divorce purposes needs to be told specifically that's why it is needed, because the calculations and presentation differ from those needed for a 'normal' CETV. That's the CETV figure you would need to include on Form E.

Many people simply get the 'normal' CETV while they are just putting together the financial information and then need to apply for the 'divorce purposes CETV' - for which there is usually a charge.

Silvertabby

The LGPS has a specific Form E, with a service history, divorce CETV and other information. The cost of the first calculation (per year) is usually free, but there will be a charge if the Pension Sharing Order is actually implemented.

It does sound like you just have a transfer CETV instead of the divorce variation. Your ex's LGPS won't speak to you, but they may respond to an enquiry from your solicitor, specifically asking for a divorce CETV and questioning why the figure already supplied is so low, in view of his length of service.

outofere

Wow, I would have had no idea, thank you so much for filling me in on that.