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How to split pensions(7 Posts)
I've name changed for this.
I need advice about how to split pensions please. STBXH is more savvy than me.
Basically he has 2 ordinary pensions and has CETVs declared in mediation. I have a teacher's pension and some very old AVCs. I worked part time for many years (some from choice) and had a year or so at home when the children were babies because of childcare costs.
Teacher's pensions are complicated apparently and I got the full stand up in court if necessary valuation done. Ordinary financial advisors don't tend to deal with them because they are complex. My union recommended Wesleyan for advice so I had someone visit but tbh I wasn't impressed.
STBXH wants to just take the CETVs of all the pensions and split them 50/50 but that would incur unspecified costs.
Please does anyone have advice about this? As I said - he's more savvy than me. I've no reason to suppose he's trying to screw me over financially but he's demonstrated that he's an accomplished liar and cheat so I can't trust him.
Hi - so sorry to hear you have to go through this complex situation. I work for Wesleyan and I’m sorry your first impression wasnt great. But as a dad of three with a wife who is a teacher AND a Wesleyan employee I am certain we can and should be your best option. We’re the leading experts in teaching pensions which are complex as you say. Give us another try? I can intervene and ensure you get a better service if needs be. Best of luck with it.
Thanks Nathan. I'll try again and hope for a clearer response.
I have some recent experience of this through a friend who is in the same situation as you.
My advice to you is to get an actuary involved because you are comparing apples to oranges.
It looks like your ex to be has defined contribution pensions (ordinary pensions) which means money is paid into them by himself/employer, the funds are invested and the CETV is straightforward in that it represents the actual amount in the pot.
Your teacher's pension, however, is defined benefit which is very different. It means you are paid a guaranteed income on retirement based on your years of service and earnings level. These are generally much more valuable because they are guaranteed. The CETV is generally much lower than the actual value required to give you this guaranteed income, hence the need to have it looked at properly.
Therefore to add both CETVs together and splitting them down the middle may be disadvantageous to either of you. For example, if you have to give your ex a share of your final salary pension it can adversely reduce your guaranteed income. You have not stated who has the larger pensions.
You are better off, especially if the pensions have significant value, having an actuary look at the pensions to equalise the income on retirement. You can share the costs with your ex and the information will stand up in court. Don't get caught out signing away your retirement income.
The TPS may also be of use to you for information on your teacher's pensions.
Thanks Dacquoise. I'll have a look at the actuary. Our CETV wasn't vastly different from each others so it sounds as if I'd be better off agreeing to him keeping his and me keeping mine. I'll check it out though. Thanks again.
Hi Fedupflo, you are possibly right to agree to a 50/50 split as the teacher's pension I am referring to was undervalued by around 30%, ie. it would need another 30%in CETV value to produce the amount of guaranteed income stated. Actuaries are very expensive to employ and it may not be in your interests to do so.
I suspec the husband's penswion will not amount to much and even being part tiem the teacher's one will be very valuable. Certainly each splitting with each other ensure entire fairness I suppose.
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