Teachers pension, how much did it cost to put you on his pension

[whymewhyme]

Hi,

Just looking for info really,
How much did it cost you to put your name on to his/ hers teachers pension? I don't have a exact figure yet but he said it was 77k if thats makes any difference. I've read it can cost anywhere between 2- 6k which is astronomical!

Also, did you have to have a finically advisor to put your share into a seperate pension.

My solicitor just sent me a draft email and now I have all sorts of questions and hey are closed.

Im feeling stressed its all too much for me atm and all I can think of how much its all costing. Arghhhhh!!!

What do you mean ‘It’s 77K’? If it’s the Teachers’ Pension Scheme, there’s no ‘pot’ as it’s a defined benefits scheme that guarantees a certain annual payment for the rest of your life.

In mediation he said it was 77k in his pension, I have no proof. My solicitor has requested prof of his pension ect

Sorry, there's no pension pot and no way of diverting a share into your own pension. There's no cash until he takes his pension. You become a pension credit holder and your payments begin whenever the pension starts being paid out. Is the £77k his lump sum element? If so, that will be on top of his monthly pension and you'll be entitled to a share of both.
Think of it as someone having a charge against your property and then not getting anything until it's sold.
There's a leaflet that you can download to understand the charges.
https://www.teacherspensions.co.uk/members/working-life/life-events/divorce.aspx

On the plus side it's a good pension scheme.

He will need to get CETV (cash equivalent transfer value) from the Teachers Pensions company so a division of the pension can be calculated, as there's no 'pot' to divide in a defined benefit pension. But beware, I've heard the Teachers Pension Company can take years to produce these, massively delaying divorce proceedings.

The charges are here: https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/family-and-dependents/pod-admin-factsheet-charges-may-2024.ashx?rev=687b31a0e485422e8eedcc60d2d084ee&hash=46ACB6E8CE88C22BD3CC172543A5BA18

It’s expensive to get it set up, and that’s after the legal fees for a pension sharing order to be drawn up too. £77k isn’t a huge
amount for a CETV so guess he doesn’t have a long service record, but you’re still entitled to a share and the income will outweigh the upfront fees. You can agree in the order who pays or if it’s split.

Our CETV was quite quick…there are horror stories for some that were started a while back as a change in the scheme meant valuation was taking ages but if his CETV is low then I expect he’s not in that category. Pensions can only be spilt by percentage in English orders so you’ll have to agree that rather than a flat amount.

ballpark figures but if his TPS is VALUED at £77,000 on a CETV basis that would suggest he's been in the scheme about 8-10 years. Does that sound plausible?

He has been in education 16yrs 12 of that was a lecturer, he told mediation that he had applied for the CETV

Thats where the 77k come from

Have you been married all that time ?

Teachers pensions are taking up to a year to get a valuation back currently ( in a lot, if not all, cases)

a CETV may undervalue a teachers defined benefit scheme and often a pensions actuary is needed. ( cost 1-2k plus vat on average)

Do you have your own pension ?

@millymollymoomoo
As far as I'm aware he already has the valuation. I have a nest pension that is all

How much is in your pension? Even if less value he is entitled to half.

That isn’t high enough for 16 years.

it takes a long time to get a correct valuation for teachers pension, and often requires a pensions expert. When did he ask for it?

have you got the cetv for yours?
have you been married the whole time he’s had his?

Well, its a long story but he told mediation he applied for it in november 24 and by may 25 he admitted he hadn't even applied

For some reason the app isnt lettingne type many words, if I write too mean it wont etc me send

I have a basic nest pension which is around 9k, he said in mediation he was happy not to pursue mt pension

Also to the person who asked, i have been with him the whole time he has been a LSA and lecturer so, 16 yrs.

of course he's happy not to pursue your pension as it is significantly less valuable than his, particularly as his is defined benefit

you really need him to get a cetv and then to instruct an expert to calculate the required pension share to equalise your incomes in retirement

in my experience (divorce sol and have instructed many pension experts) they can cost 1.5-4k all in. it sounds a lot but will obviously be worth it if you're going to receive a significant proportion of a valuable pension.

also you wouldn't be put on his pension, a portion of his pension will be transferred into a new scheme in your name (or could maybe be transferred into your nest pension)

Based on what I’ve seen and heard if he had actually applied for it in May he won’t have had it back yet ( of course it might be possible in some cases)

while he might not Pursue yours it’s still needs to go in the pot along with house equity, savings, anything else.

only then can you both start work out what a split looks like and what the possibilities re the pension are ( and what share )

Of course he's happy to not pursue your pension, it's worth 8% of his

Have you been married all this time? Any dc?

Doesn’t sound like enough but it is dependant on salary

my last check of DH’s teachers pension at 23 years and a last salary of £83k was an £80k lump sum and £1200 a month for life

Together 16yrs married 9 almost 10 years.
He told me he had the CETV but I only have his word for it