Following a divorce or dissolution of a civil partnership your ex spouse/civil partner may be entitled to part of your pension. If a pension sharing order is put in place, the pension will be retained by the Cornwall Pension Fund, until your ex spouse/civil partner reaches their normal pension age.
If you divorce, your ex spouse or ex civil partner will cease to be entitled to a widow's, widower's or civil partners pension. However children's pensions will not be affected by divorce or dissolution of a civil partnership.
If you have previously nominated your spouse or civil partner to receive a death grant, this nomination will remain on your pension record until you change it. We strongly suggest that after divorce you complete a new expression of wish for lump sum death benefits form.
What is a cash equivalent transfer value?
Your solicitor will require a cash equivalent transfer value (CETV). A CETV will provide specific information about your pension and the court will take this value into account in your settlement.
Requests for CETVs must be made in writing to the Cornwall Pension Fund using the contact details on this page. It is important that you state the reason you require a CETV is for divorce purposes and you should also specify the full address that you require the details to be sent to. You should allow up to 6 weeks for the CETV to be supplied.
Please note: There is no charge for a Divorce CETV from the Pension Fund, unless a second request is made within 12 months of the CETV being supplied. A second Divorce CETV will be supplied, but at a cost of £175 plus VAT.
The court may decide to;
This is against the value of other financial assets in your divorce or dissolution settlement. You each keep your own pension benefits but adjust the proportion of other assets to take account of the value of the pension benefits. For example you could keep your pension and your ex spouse or civil partner may get a larger share of other assets, such as a larger share of the value of the house. Alternatively the court may issue a pension sharing order, or an earmarking order.
Following a:
- divorce or,
- dissolution of a civil partnership
the court may issue a pension sharing order. This means that part of your pension is:
- transferred into your ex spouse or civil partners possession.
How will a pension sharing order affect my pension?
If a pension sharing order is put in place, the pension will be retained by the Cornwall Pension Fund (CPF), until your ex spouse/civil partner reaches their normal pension age.
At retirement your pension will be reduced accordingly, by way of a pension debit.
Your ex spouse or civil partners share of your pension will not be affected by any change in your circumstances for example re marriage.
If you remarry or enter into a civil partnership, which ends in divorce or dissolution, your remaining pension benefits may be subject to another pension sharing order.
Alternatively the court may issue an earmarking order.
Transferring your benefits
If you leave employment or opt out of the pension scheme, you still have the option to transfer your remaining pension benefits to another pension provider.
Following a divorce or dissolution of a civil partnership the court may decide to issue an earmarking order which earmarks part of your pension to your ex spouse or civil partner. These benefits will be payable when your pension benefits are paid.
The earmarking order may specify that your ex spouse or civil partner is entitled to one or a combination of the following:
- All or part of your pension
- All or part of your lump sum retirement grant
- All or part of any lump sum paid in the event of your death
If you remarry or enter into a new civil partnership, which ends in divorce or dissolution, your pension may be subject to further division. However, a pension sharing order cannot be issued if your pension already has an earmarking order against it.
Transferring your benefits
If you leave employment or opt out of the pension scheme, it is possible to transfer your benefits, if your new pension provider will accept the earmarking order.
Following a divorce or dissolution of a civil partnership your ex spouse / civil partner may be entitled to part of your pension.
The court may issue a pension sharing order. This means that part of your pension is transferred into your ex spouse or civil partners possession.
If a pension sharing order has been issued and you were awarded a pension share on divorce or dissolution of a civil partnership:
- this is known as a pension credit.
When can I receive my pension credit?
The normal pension age in the Cornwall Pension Fund is linked to your state pension age. You may receive your pension credit from age 60 however, it is likely that these benefits would be reduced for early payment. Your benefits may become payable after 65, if the pension sharing order was issued after you reach the age of 65.
If you are not at retirement age, your benefits will be held within the Fund, where they will increase each year, in line with the Consumer Prices Index (CPI).
Once you are receiving your pension, it will continue to increase each year.
What will I receive?
You will receive a monthly pension payable for the rest of your life and a one off tax free lump sum. If your ex spouse or civil partner had already retired and received a lump sum before the divorce or dissolution of a civil partnership, then:
- you will not be entitled to the one off tax free lump sum.
What if I remarry?
Your pension credit will not be affected if you remarry or if your ex spouse dies. However if your marriage ends in divorce or dissolution your pension credit could be subject to a pension sharing order.
Death benefits
If you die before the pension credit is paid, a lump sum equal to three times your annual pension will be payable.
If you are already receiving your pension credit benefits:
- please view our pensioner member pages for further information.
Transfers and pension sharing
Your pension credit in the Fund can not be joined with any other pension benefits that you hold in your own right within the Cornwall Pension Fund.
A transfer of a pension credit in to the Fund, including a pension credit which has been joined with normal benefits in another scheme, is not permitted under the Local Government Pension Scheme (LGPS) regulations.
However, it is possible to transfer out of the scheme, the pension credit that you have been awarded as some pension providers accept transfers of benefits awarded by a pension sharing order.
Our Jargon Buster may help with pensions terminology.