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Pension Sharing - deciding the percentages

  • maggie
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09 Jul 08 #31705 by maggie
Topic started by maggie
For a long time, for reasons to do with my own pension share I've been trying to establish how the percentages are decided.
There have been long arguments in lawyer circles - Vaughan v Vaughan - Maskell, Martin-Dye - the discussion seems to be ongoing and inconclusive but then came the confident statements on BDM's website that a pension can either be shared on capital values or income. BDM's advice to solicitors is to decide which it will be and proceed on that basis.
Did I miss a whole chapter on this?
Please BDM - set out for us the legal precedents for the share being based on either income or capital so we can persuade our solicitors to use the best method for our individual case.
Personally I would love to know whether the BDM method - capital or income - is a reflection of best or common practice by lawyers.

  • Peter@BDM
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09 Jul 08 #31792 by Peter@BDM
Reply from Peter@BDM
Maggie, the difficulty is that there are so few legal precedents on these issues, which is why practice varies so much across the UK. We can tell you that our lawyer clients ask for both styles of reports. Of course, we rarely get to know the outcomes of cases and in the absence of full reasoned reporting it would probably be of little help if we did.

As you probably know, the issue is that only the decisions in the higher courts are reported and there are precious few cases that get to that stage.

  • maggie
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10 Jul 08 #31872 by maggie
Reply from maggie
Thanks again Peter - great to hear lawyers are asking you for reports for pension sharing based on income because that type of report automatically produces information for the ex-spouse on how the pension scheme will deal with his/her share - for a final salary pension you can't calculate the income without knowing whether its an external or an internal transfer and for an internal transfer what rules the scheme will apply - whether it will be money purchase or something else.
Form P is supposed to ask for that information but seems to be mostly botched and disregarded - the questions on pension credit membership and benefits - section B 4 and 5 - seem too open to the wrong interpretation or deliberately avoiding providing the information required under the regulations.For someone not protected by an actuarial report Form P is the only source of information at the point of negotiation on how the pension scheme will deal with your share.
Generally speaking,do you find final salary pension schemes are ready, willing and able to declare how they intend to deal with a pension credit at the time that information's needed for pension share negotiations?
I suppose what we need to know now is whether pension sharing based on income is being accepted by judges.

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