In this instance, part of your benefits are transferred to your ex-spouse or civil partner. Your ex-spouse or partner will hold these in their own rights. As such they can transfer these pension benefits to another scheme.
This reduction to your benefits is known as a Pension Debit.
Your pension still belongs to you but some of it is earmarked, or set aside, for your ex. Earmarking Orders can require your ex-spouse or civil partner to receive one or a combination of the following:
If your pension is going to be taken into account when settling your divorce/dissolution, you or your solicitor should contact us and request a Cash Equivalent Value (CEV) of your pension. Note there will be an administration charge for this.
Once your divorce, separation or dissolution is finalised you should send a copy of your decree to us. You will also need to provide a copy of the Pension Sharing Order or Earmarking Order to the Fund.
There are strict timelines for implementing a Pension Sharing Order or Earmarking Order, so please ensure these documents are provided to the Fund as soon as possible otherwise an extension is required from the court.
If you have a Pension Sharing Order and you remarry or enter into a new civil partnership, any survivors pension payable following your death will also be reduced.
If you remarry or enter into a new civil partnership and then divorce or dissolve your civil partnership, your pension can be subject to further division. If an earmarking order has already been issued a pension sharing order cannot be issued, and vice versa.