Pension sharing meaning

This Checklist sets out, in chronological order, the actions required to implement a pension sharing order from the standpoint of trustees of an occupational pension scheme. It does not cover pension attachment orders, which are uncommon; see Practice Note: Pension attachment orders. In particular, the Checklist outlines the process where the application for a pension sharing order is made on Form A, rather than via Form D50F for financial relief following an overseas divorce (a rarer route), though the sequence is broadly comparable in that case. For guidance on implementation challenges that trustees may encounter in this context, refer to Practice Note: Pensions on divorce—issues for pension trustees. Action step Comment Source Trustees are sent a copy of Form A (Notice of intention to proceed with a financial application to which the standard procedure applies) that includes an application for a pension sharing order. Strictly, this should occur when Form A is issued. In reality, the applicant spouse may, at that stage, lack the information needed to satisfy...

This flowchart explains the actions required from the issue of a pension sharing order, following the court’s final order/decree of divorce, dissolution or nullity, through to the execution of that pension sharing order in due course...

This flowchart outlines the actions required, from filing an application through to ultimately securing a pension sharing order, where the court then issues a final order or decree of divorce, dissolution, or nullity...

In this issue: Investigating criminal conduct Criminal procedure and evidence Proceeds of crime Bribery, corruption, sanctions and export controls Consumer protection and cartels Environmental offences Financial services and pensions offences Food safety and hygiene offences Fraud, forgery, tax and theft offences Health and safety and corporate manslaughter offences International Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct Home Office issues guidance on Economic Crime and Corporate Transparency Act The Home Office has released guidance on the information-sharing measures in the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023). It outlines provisions to help ensure businesses comply with the new measures, together with practical points for organisations, including arrangements for cross-sector sharing, obligations for law enforcement reporting, UK General Data Protection Regulation (GDPR) compliance, and customer redress. See: LNB News 04/10/2024 39. Criminal procedure and evidence...

Aon Plc reported that merely 2% of those polled from defined benefit-style schemes plan to allocate to UK productive finance during 2025–26, overall. The firm noted, notably in comparable surveys run in recent years, a waning appetite among pension schemes for illiquid assets, according to Aon. We expected this pattern to create a major obstacle to the UK government’s aims of boosting pension scheme investment in UK productive finance, the company added...

Original news Ms Y (CAS-87387-G9Y9)—4 April 2025 Summary The Deputy Pensions Ombudsman has partly upheld a complaint relating to a pension sharing order. There was no obligation on the Scheme to alert the parties to a statutory time limit for implementing a pension sharing order. Nevertheless, the Scheme’s failure to recognise that the divorce was subject to Scots law—which differs from English law in divorce cases—constituted maladministration, and the complainant was awarded compensation for significant distress and inconvenience. This decision highlights the need for pension schemes to have appropriate procedures for any Scottish members. What were the facts? Ms Y’s spouse (Mr Z) was a member of the Friends Provident Pension Scheme (the Scheme). Ms Y and Mr Z divorced and their divorce was governed by Scots law. Under Scots pensions legislation...

STOP PRESS On 11 May 2026, HMRC issued a new technical note, inheritance tax on pensions. It explains the inheritance tax (IHT) changes made by the Finance Act 2026 for deaths on or after 6 April 2027. The note outlines how notional pension property will be pinpointed, assessed and apportioned to beneficiaries, who must report and settle any IHT due, how withholding notices and the pensions direct payment scheme will work, and how the reforms dovetail with existing income tax rules on pension death benefits. The government is expected to bring forward supporting secondary legislation on information-sharing duties later this year. HMRC will provide guidance, supplementary materials and interactive tools for personal representatives by April 2027. This Practice Note is being revised to incorporate the technical note. For more detail, see LNB News 11/05/20026 40. This Practice Note explains how IHT rules apply to the build-up and payment of benefits from HMRC-registered occupational and personal pension schemes. Importantly, reforms are in train to draw unused pension funds and death...

FORTHCOMING CHANGE 1 : Section 10 of the Finance Act 2022 will raise the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, except for members of the firefighters, police and armed forces public service pension schemes. This increase applies broadly across registered schemes, subject to the stated exemptions. The same Act will also permit members of registered pension schemes to access benefits before 57 where, on or before 4 November 2021, they either held an ‘unqualified right’ to draw benefits, or were already engaged in a substantive transfer to a scheme providing an unqualified right to a protected pension age below 57 on or before 4 November 2021. To rely on this new protection applying in 2028, the scheme’s rules must, as at 11 February 2021, have contained an unqualified right to take entitlement to scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact. FORTHCOMING CHANGE 2 : The Pension...

A collective defined contribution (CDC) scheme is a type of defined ambition arrangement. What is defined ambition? At its core is the principle of risk sharing, meaning the pension scheme’s risks are not shouldered wholly, or mainly, by either the employer or the members. A defined ambition pension combines aspects seen in traditional defined benefit (DB) schemes with elements typical of traditional defined contribution (DC) schemes. According to the Department of Work and Pensions (DWP), the purpose of a defined ambition pension is to provide members with greater certainty than a pure DC pension, while aiming for less cost volatility for employers than current DB pensions. In a traditional DB arrangement, the employer typically carries the full burden of risks linked to investment performance, inflation and how long members live. There has been a marked move away from traditional DB owing to factors including economic pressures and the treatment of DB liabilities in company accounts...

This precedent has been produced on the basis that the drafter is acting for the buyer. The following warranties have been prepared for a transaction where: The Buyer will provide pension benefits through its own arrangement or via an appointed provider; and Employees’ past service benefits will not be transferred to the Buyer’s arrangement. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 7 inclusive: Employee means [ [specify as necessary, either by category or by named individuals ]; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or...

1 Introduction We write to issue a joint instruction to you, an expert in financial remedy matters arising from [ divorce OR dissolution ] proceedings between [ client’s full name ], born on [ insert date of birth ], and [ spouse/civil partner’s full name ], born on [ insert date of birth ]. Your instruction is joint, from [ lead firm preparing letter ], acting for [ client’s full name ], and from [ name and address of spouse/civil partner’s solicitors ], [ telephone number and email of spouse/civil partner’s solicitors ], on behalf of [ spouse/civil partner’s full name ], on the clear understanding that your expert opinion will be independent of both parties. [ At the first appointment on [ date of first appointment ], District Judge [ name ], sitting in the Family Court at [ location ], made the following order: [ insert exact wording from order ]. ] The parties confirm that you are to be instructed jointly as the single joint expert...

This precedent is prepared on the footing that the drafter acts for the Seller. It is prepared on the basis that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions specialist is engaged at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 12 (inclusive), the following definitions set out below shall apply: Employee means any current or former employee, officer, or director of the Company [ or of any Group Company ] [ and any other individual involved in the management of the Company’s affairs ] ; Pension Scheme means any arrangement or practice providing for, or contributing towards, an annuity, pension, lump sum, gratuity, or similar benefit on retirement, long-term ill-health, or death, or pursuant to a pension sharing order, arising from the service or historic service of an Employee or any other person, or for the benefit of that individual’s dependants; and Pension Schemes shall be construed accordingly......

Put simply, financial provision orders do not come into force until the decree is made absolute. This is set out expressly for lump sum and periodical payments orders in section 23(5) of the Matrimonial Causes Act 1973 (MCA 1973). As regards property transfer orders or settlements, the requirement appears in MCA 1973, s 24(3). See Practice Note: Implications of the death of a party...

Section 28 of the Matrimonial Causes Act 1973 (MCA 1973) Pursuant to section 28 of the Matrimonial Causes Act 1973 (MCA 1973), a periodical payments order terminates automatically if the recipient remarries. If, for any reason, this does not occur, an application can be brought to recover the sums paid. See Practice Note: Impact of remarriage, subsequent civil partnership, or cohabitation...

A pension sharing order A pension sharing order enables one party to obtain, in their own name and in their own right, benefits directly debited from the other party’s pension scheme, and secures a clean break between the parties regarding pensions. Sections 11 and 12 of the Welfare Reform and Pensions Act 1999 (WRPA 1999) state that pension rights under approved pension schemes do not vest in a trustee in bankruptcy, provided the bankruptcy petition was presented on or after 29 May 2000 under the legislation. Consequently, if the individual holding the pension to be shared is made bankrupt, the court’s authority to make a pension sharing order should remain unaffected in law...