Divorce and the cost of Information

on Thursday, 14 June 2012. Posted in General News

Just for clarity, I have seen Cash Equivalents referred to as CETVs, CEVs or PEVs, they all pretty much mean the same thing.  Anyway, anyone who has not yet retired has a right to a free Cash Equivalent once every twelve month.  

The costs start to build up if you ask for the Cash Equivalent early in the process and then require a replacement within 12 months or in the case of individuals who have already retired where virtually all schemes charge for providing a Cash Equivalent.

You might think that the public sector schemes charges would be the lowest, after all they shouldn’t be trying to make a profit out of divorce and the schemes are much larger than the typical private sector scheme so they should get economies of scale.  This doesn’t seem to be the case with the NHS Pension Scheme being the worst offenders charging £378 just for providing a Cash Equivalent where the individual does not have the right to one for free.

With sufficient information, IWC Actuarial can estimate the Cash Equivalent with sufficient accuracy as part of a more meaningful report on Pension Sharing or valuation for Offsetting.  For public sector pension schemes the additional cost is likely to be no more than £100.

 

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