Who can benefit from a Pension Audit Report?
The Pension Audit Report can be used where the pension is a Defined Benefit (final salary) scheme. This report is suitable when the pension value is significant and a more detailed valuation is cost effective.
The Defined Benefit schemes available for the public sector are Old Public Schemes or New Public Schemes and for the private sector are Good Private Schemes or Average Private Schemes. If the pension is a money purchase scheme such as a stakeholder personal pension, the quotation from the provider will show the actual value of the pension after charges and this report cannot be used in these cases.
What will the Pension Audit Report consider?
The Pension Audit considers every aspect of the defined benefit (final salary) pension scheme and is used in particular when the pension benefits are a large proportion of the assets on divorce, the scheme value is calculated by multiple benefit definitions, ill health of the pensionholder or spouse is an issue or if you require an alternative valuation basis that includes income equalisation from the pension assets. For a Pension Audit Report, the adviser will take responsibility for validating pensionholder details and the scheme terms. A report requires the consent of the pensionholder to approach the scheme, though if necessary the court may instruct that the consent is given.
How much does it cost?
The Pension Audit Report typically costs £1,500 per pension scheme valued although this would be advised for each case before any work is started.
How long will it take to produce?
Before starting the work information would be required from the scheme administrators and this can take additional time. Typically the Pension Audit Report should take three to four weeks to complete. See a summary of the pension information.
Can the Pension Audit Report be used for the uniformed services?
The Pension Audit Report can be used if the pension scheme member is part of the fire & rescue, police force, armed forces or prison service. Due to the special early retirement features of these schemes, it is common for the report to produce an appropriate valuation of 3 times the CETV. See an example of the uniformed services valuation.
When should I buy a report?
Before starting a Pension Audit Report you must have specific information regarding the pensionholder's defined benefit (final salary) pension scheme. You can find this on the quotation supplied by the pensionholder's scheme provider that includes the cash equivalent transfer value (CETV). This quotation must be included by the pensionholder in Form E sent to the court and exchanged 35 days before the first appointment during ancillary relief proceedings.
Do I need to contact the scheme to do a valuation?
No, the information to complete the
a Pension Audit Report is available from Form E that includes details of the quotation supplied by the pensionholder's scheme provider. Further information may be required and we would require authority from the member to request information from the scheme administrators which can take additional time.
Do I need my spouse or partner's consent or authority to run a valuation of their pension?
Yes, if we need to contact the
scheme administrators we would need an authority to approach them for further information.
Can both parties use one Pension Audit Report to value the pension assets?
Yes, if the parties are engaged in the collaborative process the Pension Audit Report may be used as an alternative to the conventional cash equivalent transfer value (CETV). In these circumstances agreement may be reached to divide the pension assets based on the Report alone. This report is suitable when the pension value is significant and a more detailed valuation is cost effective.
Can I use one report for multiple pension schemes?
Yes, however before starting the work we would advise you of the cost for the report containing multiple schemes.
Can the Pension Audit Report be used in court?
The Pension Audit Report can be used to determine the division of the pension assets and relied upon in court.