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For Councillors: Divorce

Your pension and divorce: Understanding the process

If you are going through a divorce, or dissolution of a civil partnership, the Court will normally take into account your pension assets as part of deciding whether a proposed settlement agreement is reasonable.

As your LGPS pension is expressed as an annual pension, it is necessary to perform a calculation to turn your pension into a single figure to give an approximation of its value in a comparable way to other assets you may have. This is referred to as a Cash Equivalent Value (CEV) and the way it is calculated is decided at a national level but we perform this calculation at the Fund using the Government calculation methodology.

If your solicitor asks for CEV of your pension rights, we will provide this for you.

Further information about how to do this, other useful information and what may happen if a Pension Sharing Order (PSO) is put in place, can be found by clicking on the relevant box below:

If you or your solicitor require a CEV of your pension benefits please contact us.

We will calculate how much your benefits are worth and provide you with a CEV for divorce purposes. The Court will take this value into account in your settlement. If there is a Court date, you will need to provide us with documented evidence confirming this.

There are strict time limits for sorting out pension arrangements during a divorce or dissolution. While we technically have up to 3 months to provide the information, we will aim to provide you with this information within 20 working days of receiving your request form, however, this may be longer if we have to ask for further information from your employer.

If you or your solicitor require a CEV of your pension benefits please contact us.

We will calculate how much your benefits are worth and provide you with a CEV for divorce purposes. The Court will take this value into account in your settlement. If there is a Court date, you will need to provide us with documented evidence confirming this.

There are strict time limits for sorting out pension arrangements during a divorce or dissolution. While we technically have up to 3 months to provide the information, we will aim to provide you with this information within 20 working days of receiving your request form, however, this may be longer if we have to ask for further information from your employer.

As part of the Court proceedings, you and your ex-spouse or ex-civil partner can determine how pension benefits are divided. Typically, there are three main options available:

  • Pension sharing: The pension is divided at the time of divorce or dissolution, providing each of you with an individual pension pot. If this happens to your pension with us, we will apply something called a 'pension debit' which is a one-off reduction to your benefits and then credit your ex-partner with a corresponding 'pension credit'. You will continue accumulating pension benefits independently of the pension credit thereafter.

  • Pension offsetting: Each party retains their own pension benefits, but the distribution of other assets is adjusted to reflect the value of the pension. For instance, you might keep your pension while your ex-spouse or ex-civil partner receives a greater share of the property's value.

  • Pension earmarking: A portion of one person's pension benefits is designated to be paid to the other when the benefits are eventually accessed.

As part of the Court proceedings, you and your ex-spouse or ex-civil partner can determine how pension benefits are divided. Typically, there are three main options available:

  • Pension sharing: The pension is divided at the time of divorce or dissolution, providing each of you with an individual pension pot. If this happens to your pension with us, we will apply something called a 'pension debit' which is a one-off reduction to your benefits and then credit your ex-partner with a corresponding 'pension credit'. You will continue accumulating pension benefits independently of the pension credit thereafter.

  • Pension offsetting: Each party retains their own pension benefits, but the distribution of other assets is adjusted to reflect the value of the pension. For instance, you might keep your pension while your ex-spouse or ex-civil partner receives a greater share of the property's value.

  • Pension earmarking: A portion of one person's pension benefits is designated to be paid to the other when the benefits are eventually accessed.

If a PSO is issued by the Court, a portion of your pension benefits will be allocated to your ex-spouse or ex-civil partner.

At the time of divorce or dissolution, your pension and any lump sum will be reduced by the amount assigned to your former partner.

The Pension Debit amount will be adjusted for increases in the cost of living from the date it was initially calculated to the date your benefits are paid. Once your benefits are accessed, the revalued Pension Debit amount will be deducted from your retirement benefits. This amount will also be adjusted if payment occurs before or after your Normal Pension Age.

Your ex-spouse or ex-civil partner will receive their own independent pension benefit, which they will retain regardless of any changes to your or their circumstances.

There is currently an administration fee for this service, contact us for further details.

If a PSO is issued by the Court, a portion of your pension benefits will be allocated to your ex-spouse or ex-civil partner.

At the time of divorce or dissolution, your pension and any lump sum will be reduced by the amount assigned to your former partner.

The Pension Debit amount will be adjusted for increases in the cost of living from the date it was initially calculated to the date your benefits are paid. Once your benefits are accessed, the revalued Pension Debit amount will be deducted from your retirement benefits. This amount will also be adjusted if payment occurs before or after your Normal Pension Age.

Your ex-spouse or ex-civil partner will receive their own independent pension benefit, which they will retain regardless of any changes to your or their circumstances.

There is currently an administration fee for this service, contact us for further details.