When a pension sharing order is received from the Court, the first stage is to check that all the necessary information has been provided and any charges requested at this stage have been paid.
The value of the member's benefits should be recalculated, as described in sections Calculating the cash equivalent for members already in receipt of benefits and Calculating the cash equivalent for active and deferred members. In the case of an active member, the benefits should be those to which the member would be entitled if pensionable service had terminated immediately before the transfer day: the day when the order takes effect. The cash equivalent should be based on the age, and benefits of the member at the transfer date.
For divorces under English law, or for divorces in Northern Ireland, the pension sharing order will specify the percentage of the member's benefits that the ex-partner will be entitled to. The member's cash equivalent (CE) obtained in the above paragraph should be multiplied by this percentage, to give the value of the ex-partner's benefits, or the ex-partner's cash equivalent (ESCE):
ESCE = (CE x appropriate percentage / 100) - Charges
Where:
CE is the cash equivalent of the member's benefits at the transfer date
Charges are any charges to cover the cost of the work generated by the pension sharing order, which the fire authority have decided should be deducted from the value of benefits awarded to the ex-partner
Under Scottish law, the pension sharing order will usually specify a monetary amount (MA). The percentage of the member's benefits that the ex-partner will be entitled to should be calculated as the ratio of the monetary amount and the cash equivalent (CE):
appropriate percentage = ( MA / CE ) x 100
When the appropriate percentage is used to calculate the ex-partner's cash equivalent as in the ESCE formula, the ESCE will be equal to the monetary amount specified in the order, less charges.
The value of the shareable rights calculated in this way should be used to derive both the pension debit and the pension credit, as described in Calculation of pension credits and Calculation of pension debits.
This section sets out the method for calculating the pension credit payable to the ex-partner following the issue of a pension sharing order by the Court. Table J sets out the factors needed to calculate the pension credit for the ex-partner (for standard members).
An additional factors table is required for special members to calculate pension credits on divorce (see Table J1). Consequently, the factors referred to in this guidance are either taken from Table J if the member in question is a standard member, or from Table J1 if the member in question is a special member.
The factors should be based on the age and gender of the ex-partner on the transfer date. Do not use the age and gender of the member.
If the member is an active member, a deferred pensioner or a current pensioner, the pension credit as at the calculation date will be:
Pension credit = ESCE / Fp
Where:
ESCE is the the ex-partner's cash equivalent - see the Calculation of the value of shareable rights section
Fp is the factor for ex-partner pension - Table J (standard member)/Table J1 (special member)
The pension credit will be paid when the ex-partner reaches age 65 (age 60 if the pension debit member is a special member), or from the transfer date if the ex-partner is over age 65 (over age 60 if the pension debit member is a special member).
The ex-partner's pension credit will be subject to pension increases with effect from the transfer date, under the provisions of the Pensions (Increase) Acts.
