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Divorce or dissolution of a civil partnership

Offsetting Pension Rights

The value of your pension rights can be offset against the value of other financial assets in your divorce/dissolution settlement.  For example, you could keep your pension but your ex-spouse or ex-civil partner could get a larger share of the value of the house.

 

Earmarking Order

If the Court makes an Earmarking Order, your LGPS benefits still belong to you, but some are earmarked for your ex-spouse or ex-civil partner. The earmarked benefits will be paid to your ex-spouse or ex-civil partner when your benefits are paid, reducing the amount paid to you.  Earmarking has limitations and is not widely used. 

 

Pension Sharing Order

If the Court issues a Pension Sharing Order, the value of your pension benefits is split and part of your benefits is transferred into your ex-spouse's or ex-civil partner's possession.  They will keep that share even if your or their circumstances change. 

Your ex-spouse or ex-civil partner will hold his/her share of the benefits in his/her own right.

Your pension and any lump sum will be reduced by the percentage allocated to your ex-spouse or ex-civil partner and this reduction is known as a Pension Debit.  The amount of the Pension Debit  will be increased in line with inflation between the date it was first calculated and the date your benefits are paid.  When your benefits are paid, the revalued amount of the Pension Debit will be deducted from your retirement benefits.