There are many things to consider if you are going through a divorce.
Steps four to six refer to pension sharing in England and Wales. If your pension sharing order is made in a Scottish court, contact us for information.
- Change of address or name
You should notify us of changes. The easiest way to do this is via our Member Portal.
Alternatively, you can complete the Change of Personal Details form or write to us giving:
- National Insurance number,
- new address if applicable,
- change of name by deed poll if applicable.
- Death grant expression of wish
You can update this via our Member Portal or complete the Death Grant Expression of Wish form:
- Cash Equivalent Transfer Value (CETV)/Cash Equivalent Value (CEV)
As part of proceedings for a divorce or nullity of a civil partnership you may be asked for a CETV (or a CEV for a pensioner).
Active/deferred members - are entitled to one CETV per year free of charge. You can find a form to apply for this at Forms.
For purposes of the court, a CETV dated within the last 12 months is usually sufficient, however, if you require more than one CETV in a year then this can be provided at a cost. Contact us for details.
Pensioner members - in all cases, there is a charge to provide a CEV for a pensioner. Send us your written (signed) request for a CEV.
- Pension sharing
You and your ex-spouse or ex-civil partner may agree on a "pension share". This will be detailed in a pension sharing order which must be approved by a family court.
Before the pension sharing order is set before the court it is essential that you send us a draft copy so that we can check that the provisions do not contravene the LGPS regulations. This will avoid the need to make changes after the court has approved the order, which can be costly.
The order will specify the percentage of your pension which will be transferred to your ex-spouse/ex-civil partner.
The pension split will be effective from a date defined by the pension sharing order, normally the later of:
- date of decree absolute, or
- 28 days from the date of the order.
At this date:
- the member's pension will be reduced by the specified percentage, and
- the same percentage of the CETV/CEV will be awarded to the ex-spouse/ex-civil partner.
Note: you cannot choose the date for your pension to be split. It must be the date defined above.
The reduction to the member's pension is known as the pension debit. It will be revalued annually in line with inflation, from the date of the split until the date the member's benefits are paid.
- The Pension Credit
At the date of the pension split the agreed percentage of the CETV/CEV is awarded to the ex-spouse/civil partner. This portion of the member's CETV/CEV can be retained within the LGPS and used to set up a deferred pension (known as the pension credit) or transferred to another registered pension scheme.
If the pension credit is left in the LGPS:
- it will be revalued annually in line with Treasury Orders, currently linked to the Consumer Price Index,
- the pension credit can be claimed from age 55 but reductions will be applied if it is claimed before normal retirement age,
- if the original scheme member had any LGPS membership after 31 March 2014 then the normal retirement date of the pension credit member is state pension age,
- at the date of the pension split, if the pension credit member has already passed their normal retirement date then the pension credit will be brought into payment immediately.
- Implementation charge
There is always a charge for implementing a pension share and the order will specify what portion each party to the divorce will pay. This charge covers the administration costs involved with setting up a pension credit and administering the pension in payment or for transferring the credit member's share to another pension scheme. You will be notified of the current implementation charge when you request an estimate for divorce purposes.