Black hole for public sector pensions following emergency budget

Written by admin

August 23, 2010

Public sector pension schemes have suspended implementation of pension sharing orders.

All public sector pension schemes are currently changing their index linking from the Retail Price Index (RPI) to the Consumer Price Index (CPI) as the CPI is generally lower than the RPI. This is going to lead to lower Cash Equivalent Transfer Values. Public sector schemes are currently revising their CETVs and the method for calculating pension credits for ex-spouses as a result of this change.

As they have currently not calculated how to deal with these changes and are awaiting guidance from the Treasury (which will hopefully be available within 3 months!), public sector pension schemes have suspended the provision of Cash Equivalent Transfer Values and the implementation of pension sharing orders.

This will of course cause delays in divorces where one party has a public sector pension scheme where a pension sharing order is being considered/implemented.

Contact our specialist family lawyers now on 01992 892214 for advice.

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