Changes to public sector pensions and the impact on divorce

As a result of this change, the production of cash equivalent transfer values for public sector pensions for divorce purposes will be suspended, potentially for several months. Affected pensions include Armed Forces, Teachers’, Civil Service, Police, Firefighters and NHS.

When dealing with pensions on divorce, it is necessary for the divorcing parties to obtain cash equivalent transfer values for each of their pensions to establish the value of those pensions and determine the level of pension sharing or offsetting that might be appropriate in that particular case.

The suspension of calculations for the foreseeable future means that it is highly likely that resolution of any divorces which involve public pensions will be delayed by this suspension. However, our Family & Matrimonial team specialises in advising on Armed Forces pensions on divorce and we have close working relationships with specialist actuaries. We are therefore very well placed to advise and assist to resolve any affected matters as soon as practicable.

It remains unclear how long the delays will last, however, given the issues that public sector schemes have had in recent years with issues such as the recalculation of pensions following the McCloud judgment, it is expected that delays will be several months. This may also serve to have a knock-on effect on the implementation of any pension sharing orders already made in relation to public sector schemes.

If you have any queries regarding the resolution of finances on divorce or any aspects of family law, then please contact a member of the Field Seymour Parkes family team.