Pension set off

What is the typical set off rate used to calculate the capital sum to be paid to off set a pension pot? I have final salary pensions in being of £14472 pa and want to know how much I would have to pay my wife to set off her 50%.

Do you mean your pension is in payment now? Or that when you start to get it it will be worth £14472pa. I ask because pensions in payment are not treated the same as pensions not yet being paid.

Many thanks, Yes my pension is in payment now. I am retired.

I hesitate to give you advice on this but those who do write knowledgeably on pensions needed to know that as it makes a difference, I believe, in working out what is to be done with it.

I understand pensions in payment are not necessarily treated as 'assets' of the marriage but as 'income stream' but I'm sure someone will answer shortly and give you more knowledgeable advice.

best wishes

Hi Mustard,

your situation is similar to my own and I believe Ephelia is right in saying that pensions in payment are treated as income stream NOT as a transferrable asset.

It is a very ambiguous area so don't take my word for it - however if you check out the case of Martin-Dye .v. Martin-Dye (google) it does seem to suggest that what Ephilia is saying is correct

Dave (guitarman)

Hi to all,
I have been through this particular situation. My pensions were in payment and the only other asset was a house.
At the final hearing the DJ stated that unless an agreement was forthcoming, the house would have to be sold and I would get 50% of the sale price(£280,000 valuation).(long marriage no children). Then my pensions evaluation would be looked at and I would have to give my X a share of that pension pot. It looked like about 42% of a £360,000 pot. This would take place within 3 months and my income from those pensions would be decreased accordingly. The problem was that the house sale could take a long time but my pension would decrease within 3 months!.

After much arbitration I got a lump sum from my wife, she kept the house and I kept all of my pensions.

The cost of all this £9200 sol fees for me and 14,500 to my X

Hi BVG - very similar to my own situaation with one exception - my wife has a pension also but not in payment whereas mine is in payment.

I took part of my pension as a tax free lump sum which was held in a savings account and which my wife took half of when she left.

My argument now is that she has benefitted from my pension (50% of my lump sum) and so this ought to be recipricated by me being entitled to benefit from hers (or offset some of her pension against the house)

If I get no claim against her pension, then she will in effect recieve the full benefit of hers on retirement as well as 50% of mine

Are you aware of the Martin-Dye Case?

Dave (guitarman)