Who can benefit
Where a couple are divorcing and the assets include a Defined Benefit (final salary) scheme the CETV could be under quoting the fair value of the pension on divorce by up to 30%, or even more in some cases such as the uniformed services pension schemes. Although a fair valuation would therefore normally be of greater benefit to the spouse of the pensionholder, it can also be obtained by the pensionholder to understand the true financial position of the pension.
To determine an accurate value of these pensions by using an expensive bespoke service could cost up to £1,000, take several weeks and there is no guarantee the result would justify the cost. To give you an accurate idea if a bespoke service is really necessary and to reduce your initial costs it is now possible to use an online alternative service producing an Actuarial Report for only £80 that is signed off by an accredited actuary.
It is normally cost effective where the CETV is greater than £30,000, however, there is no reason why you should not run a valuation on pensions worth less than £30,000, other than the fact that the likely difference in values may not justify the small cost.
If the parties are engaged in the collaborative process this Actuarial 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 online Actuarial Report alone.
£80 Actuarial Report (click here)
The online pensions Actuarial Report costs only £80 (Excl VAT) per pension scheme valued, the same price paid by family solicitors, IFAs and other professionals that use this service to value pensions on divorce and takes as little as ten minutes to complete from start to finish. It uses a unique online Express Pension Valuation system which is a quick and cost effective means of determining the value of a defined benefit (final salary) pension scheme. To use this service it is not necessary to contact the pensionholder or their pension scheme.
The end result is a five page report signed off by an accredited actuary that you can print out and discuss the findings of the report with your solicitor. See a example of the specimen actuarial report.
There are four main types of defined benefit schemes that can be valued, Old Public and New Public sector schemes, Good Private and Average Private sector 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. The results shown are actual valuations the Actuarial Report has produced based on fifteen simple pieces of data. See examples of the pension valuations.
£100 Uniformed Services Report (click here)
This actuarial report is designed specifically for the police, fire & rescue, armed forces and prison services pension schemes where an appropriate valuation of 3 times the CETV value is not uncommon.
The off-line actuarial Uniformed Services Report costs only £100 (Excl VAT) per pension scheme valued, the same price paid by family solicitors, IFAs and other professionals that use this service to value pensions on divorce. It is produced manually and signed off by an actuary, is returned to you in only two working days and includes a reconciliation to explain the major reasons for the differences. You can then discuss the findings of the report with your solicitor. See an example of the uniformed services valuation.
Sharingpensions.co.uk partner actuary is Bradshaw, Dixon Moore. They provide specialist actuarial and administrative professional services to solicitors and other legal advisors that includes valuing Defined Benefit (final salary) schemes on divorce, with an aim to provide leading-edge online automated and technically based valuations. This service to professionals is available through their Express Pension Valuation system and in association with Sharingpensions.co.uk is now made accessible directly to individuals on divorce. It produces an online personalised Actuarial Report valuing the pension assets at the same price paid by family solicitors, IFAs and other professionals that use this service to value pensions on divorce.