Pensions on divorce and actuarial report: baffling me

[financialnightmare]

Perhaps this is a silly question, but I'm confused about how NHS/civil service pension splitting works once you have an actuarial report.

i.e.

Say CETV (husband's pension) is 100k
Actuarial report says it is worth 200k

Wife wants 50% of pension - but is that then the entire pension?!

The salary scheme will only put the CETV percentage in a shadow scheme, but 50% of the actuarial report would be the entire pension.

So how does it work? I am totally baffled....

[Collaborate]

What you'd need to work out is the % share that provides for equality of income. That's what the actuarial report should have addressed.

It won't be 100% of the pension. For an unfunded final salary scheme like the NHS scheme a pension credit recipient will end up with their own NHS pension.

[financialnightmare]

Thank you collaborate. That is helpful.

[akaWisey]

I got 38.8% of the total pension pot of both mine and my ex h's NHS pension which gives us a 50/50 share of the pension.

His was by far the better pension due to his having MH officer status and being a longer served and higher earner than me.

HTH

[financialnightmare]

If his was better, how was it that 38% gave you the same income on retirement? I'd have thought it would be the other way round - especially as shadow schemes tend to be not as good?

Thanks for the reply. :)

[Collaborate]

I'd guess different ages. The older spouse always should have more if they are to equalise incomes on retirement at the same age.

[financialnightmare]

Ahh, thank you.