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Original poster

Divorce LGPS actuarial report

22 replies

Cantwaittomoveon · 02/04/2021 09:06

Hi all,
I’m in the process of a divorce and starting the financials. My DH has worked in Local Government all his working life, but at three different places. I don’t believe they are all combined.
I’ll be asking for an actuarial report, would anyone know if this will show anything else transferred in?
My fear is he is hiding stuff, I also think he has a private pension too.
Welcome any comments please....

OP posts:
LakieLady · 02/04/2021 11:29

Unless there were gaps in his local government service, it should be all one pension. I worked for 5 different councils, but my pension came with me each time.

LG pensions don't (generally) have an individual pot of money invested because they aren't based on annuity purchase. It's all one big fund.

When I got divorced, I just went to last local authority pension dept and got a "certificate of equivalent transfer value" (CETV). That was all that the other side and the court required in respect of that pension.

I don't understand why you're doing this though, and I'm far from convinced that this information would be disclosed to you. I had to get it to complete my form E. My XH had to get all his pension info in the same way, and include it along with his pay details, savings balances etc.

notapizzaeater · 02/04/2021 11:31

My mum had to get an actuary report for my dads pensions, it stated the dates he'd paid in so you could see any gaps. Not sure if it would find any personal pensions though, think it just did the ones my dad disclosed (which was all). When the split came my mum got 70% of his pot based on the report findings. Was worth its weight in gold.

Salarymallory · 02/04/2021 11:33

An actuarial report won’t do any digging whatsoever

They will evaluation the info provided by you and your husband

LakieLady · 02/04/2021 11:36

Afterthought: do you think he has a private pension from a previous, non-LG job, or one that he took out privately himself?

It would be mad to save separately in a private pension as well as the LG one, as the LG scheme is still a pretty good deal and you can make additional voluntary contributions (AVCs) over and above the standard amount paid in under the scheme. If he was paying into a private pension instead of paying AVCs, he's a loon. Unless there were significant tax benefits, anyway.

If he was already paying the max in AVCs, that's a different matter. In which case, his pension could well be worth an awful lot.

Froggie456 · 02/04/2021 11:38

Agree with @Salarymallory pensions actuary will work on the information provided.

If your husband has always worked for local government his pension will all be with LGPS.

Definitely get a report if you can because public section pensions (defined benefit) are worth far more then a private pension with a comparable CETV. (Which is why I would be slightly surprised if he paid into a private pension as contributions into his local government scheme would be more valuable).

Salarymallory · 02/04/2021 11:39

@LakieLady

More control over pp in terms of funds

Original poster
Cantwaittomoveon · 02/04/2021 11:49

@LakieLady

Afterthought: do you think he has a private pension from a previous, non-LG job, or one that he took out privately himself?

It would be mad to save separately in a private pension as well as the LG one, as the LG scheme is still a pretty good deal and you can make additional voluntary contributions (AVCs) over and above the standard amount paid in under the scheme. If he was paying into a private pension instead of paying AVCs, he's a loon. Unless there were significant tax benefits, anyway.

If he was already paying the max in AVCs, that's a different matter. In which case, his pension could well be worth an awful lot.

I think it’s AVC’s although stopped a while back as I noticed his take home pay increasedConfused
OP posts:
Original poster
Cantwaittomoveon · 02/04/2021 11:52

@Froggie456

Agree with *@Salarymallory* pensions actuary will work on the information provided.

If your husband has always worked for local government his pension will all be with LGPS.

Definitely get a report if you can because public section pensions (defined benefit) are worth far more then a private pension with a comparable CETV. (Which is why I would be slightly surprised if he paid into a private pension as contributions into his local government scheme would be more valuable).

I don’t think they’re linked though, and with different LGPS providers. As I remember him saying so. As there is one he can take at 60.
Would an actuarial report show AVC’s?
OP posts:
Salarymallory · 02/04/2021 11:55

Op

The actuarial report is an evaluation of data provider by you and your husband.

That’s it

Salarymallory · 02/04/2021 11:56

So if your husband doesn’t provide them with something
They won’t evaluate it

Salarymallory · 02/04/2021 11:56

I think you need to speak with your solicitor

AdventureIsWaiting · 02/04/2021 12:01

Your AVCs are attached to your pension, so a pension statement shows both the pension and AVCs (in my experience - not local government but similar). A PP has said the actuarial report only analyses information provided, but it would be difficult for your ex to hide the AVCs as he'd have to split up all his pension statements and presumably the actuary will ask why they have, e.g. half a statement.

Salarymallory · 02/04/2021 12:10

@AdventureIsWaiting

Your AVCs are attached to your pension, so a pension statement shows both the pension and AVCs (in my experience - not local government but similar). A PP has said the actuarial report only analyses information provided, but it would be difficult for your ex to hide the AVCs as he'd have to split up all his pension statements and presumably the actuary will ask why they have, e.g. half a statement.
Oh if it’s clear that half the information is missing from a statement - they will undoubtedly make enquiries of your husband

But ultimately you and your husband are clients of the actuary

They aren’t going to nor would they even be able to.... go digging

Original poster
Cantwaittomoveon · 02/04/2021 12:18

Thanks all, I shall chat through with the solicitor.....

OP posts:
Original poster
Cantwaittomoveon · 02/04/2021 12:20

I have the Government pension statement which has no reference to AVCs

OP posts:
mrsmalcolmreynolds · 02/04/2021 22:37

The AVCs may have been of a type that buys extra pension as you go along (sometimes called "added years") , in which case they wouldn't show separately.

If you think your STBXH is hiding something, might be best for your solicitor to raise it, pointing out that incomplete information on Form E is a serious matter.

Cocomarine · 03/04/2021 11:42

@LakieLady not a loon at all. I have a personal pension and do not pay AVCs in my company pension. Reason? I cannot take the AVC money back until I trigger my company pension. With my personal pension, I take it when I’m 57. So I can bridge the gap for early retirement without having my company pension reduced for early retirement. Even with early retirement if I accepted the reduction, scheme rules forbid it before age 60.

Am I a loon? 😉

OP - do you think the personal pension are being paid into currently? As part of the disclosure, you will get recent bank statements. Think it’s 6 months, but happy to be corrected! Go through the outgoings with a fine tooth comb, you may find a regular pension outgoing!

And of course, wait until he’s out of the house and go through every damn bit of paperwork you can find! There is actually case law against being able to use information you’ve found in this way... but he could well crumble anyway when your solicitor writes to his saying, “my client believes there is also a personal pension with Aviva - please supply the last annual statement”.

Original poster
Cantwaittomoveon · 03/04/2021 13:34

[quote Cocomarine]@LakieLady not a loon at all. I have a personal pension and do not pay AVCs in my company pension. Reason? I cannot take the AVC money back until I trigger my company pension. With my personal pension, I take it when I’m 57. So I can bridge the gap for early retirement without having my company pension reduced for early retirement. Even with early retirement if I accepted the reduction, scheme rules forbid it before age 60.

Am I a loon? 😉

OP - do you think the personal pension are being paid into currently? As part of the disclosure, you will get recent bank statements. Think it’s 6 months, but happy to be corrected! Go through the outgoings with a fine tooth comb, you may find a regular pension outgoing!

And of course, wait until he’s out of the house and go through every damn bit of paperwork you can find! There is actually case law against being able to use information you’ve found in this way... but he could well crumble anyway when your solicitor writes to his saying, “my client believes there is also a personal pension with Aviva - please supply the last annual statement”.[/quote]
I believe you can transfer your AVC to a draw down without having to take your main LGPS

OP posts:
Cocomarine · 03/04/2021 15:20

That’s true @Cantwaittomoveon but it’s an all or nothing scenario - if you have multiple AVC pots from moving between LGPS schemes, you can’t just take the one you need - you have to take them all. Fine for some people, but it is a restriction. You also can’t then continue paying AVCs even if you’re an active member of the LGPS. Again, that might suit an individual, but it won’t suit everyone. Hence my point that it’s wrong to just brand someone as loon for not doing what you would do. (I know it wasn’t you who made the loon comment!)

StaffRepFeistyClub · 03/04/2021 15:45

Look for evidence of other pots - ISAs and shares for eg. A friend's exH had £30k in a share club which he had been part of for years.

Original poster
Cantwaittomoveon · 03/04/2021 17:40

@StaffRepFeistyClub

Look for evidence of other pots - ISAs and shares for eg. A friend's exH had £30k in a share club which he had been part of for years.
Thank you
OP posts:
Polkadotties · 04/04/2021 15:47

A CETV for divorce purposes will show the pension benefits as at the date of calculation.
It was show the transfer value and also how much per annum the pension (and any pre 08 auto lump sum) is worth as at the date of calculation.
If your husband has also paid into an in house AVC scheme this will also be show.

LGPS benefits can be held at different authorities. Members do not have to aggregate all their benefits to one authority if they do not wish to

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