If you get divorced or your registered civil partnership is dissolved, there are two important points that you should note. Your ex-spouse will no longer be entitled to any survivor pension, should you predecease him / her, but any child’s pension will continue to be payable to an eligible child in the event of your death.
The cost of complying with any Court order imposing obligations on the 1987 Scheme may be recovered directly from you.
You should also note that in the event of a financial claim in proceedings for divorce, judicial separation or nullity of marriage, the Police Force are required, if requested, to provide a statement of the cash equivalent transfer value of your pension rights to enable the Court to take into account the pension entitlement in the settlement of financial claims.
The Court may offset the value of your pension rights against any other assets or in divorce or nullity proceedings it may issue a pension sharing order. In financial claims arising from proceedings for nullity, judicial separation or divorce a Court may make an earmarking order against your pension.
If the Court issues an earmarking order, the order may require that when your benefits come into payment your ex-spouse should receive one of, or a combination of the following benefits:
- All or part of your pension;
- All or part of your lump sum;
- All or part of your death grant paid in the event of your death in service.
An earmarking order against pension payments (but not lump sums unless the order so directs) will lapse automatically on the remarriage of your ex-spouse, and your full pension will be restored to you. Pension payments to your ex-spouse cease on your death.
If the Court issues a pension sharing order, a percentage of your pension rights will be allocated to your ex-spouse at the effective date of the order, or the decree absolute if later. Your pension, your lump sum and survivors’ benefits will be reduced. Your ex-spouse will hold pension credit benefits in the 1987 Scheme in his/her own right which will become payable when he/she is 60. The reduction to your pension is called a pension debit.
The dissolution of civil partnerships gives rise to the same position as divorce.