Divorce

As part of a divorce settlement (or a settlement resulting from the dissolving of a civil partnership), the law allows the current value of a teacher’s pension benefits to be shared.

The first stage towards Pension Sharing is for Teachers’ Pensions to provide an up to date Cash Equivalent Transfer Value (CETV). In order to do this we’ll get in touch with you to provide the most up-to-date service and salary details.

What you should do when information is requested

1. You must return the completed form to the member, who’ll send it to us as part of their request for a CETV.
2. If the case proceeds to Pension Sharing, you’ll get a further request for up-to-date service and salary details before the pension share is put into effect by Teachers’ Pensions.

Premature Retirement Compensation (PRC)

Pension Sharing does not apply to mandatory compensation or discretionary enhancement.

Retirement Benefits

You should be aware that if you obtain an employee’s benefit details from us, they won’t show a reduction in service if a teacher is subject to Pension Sharing. Instead the benefits, when they come into payment, are reduced.

How do you calculate the reduced retirement benefits?

1. Calculate the benefits as normal, i.e. as if no Pension Sharing has occurred.
2. The basic amount of reduction in the benefits, which was calculated at the time of Pension Sharing and index link them up to the date of retirement.
3. 2 is deducted from 1 to produce the reduced amounts payable.

The benefits reduced are the pension and lump sum. Short-term pensions, where the member dies in service, are unaffected.