If the Court issues a Pension Sharing Order part of your benefits are transferred into your ex-spouse's or ex-civil partner's possession. They will keep that share even if your or their circumstances change.
Your ex-spouse or ex-civil partner will hold those benefits in their own right. They can be:
- left in the scheme and are normally paid from normal pension age, or
- transferred to another qualifying pension scheme.
Your pension and any lump sum will be reduced by the amount allocated to your ex-spouse or ex-civil partner at the point of divorce/dissolution.
The reduction to your benefits is known as a pension debit. The amount of the pension debit will be increased in line with the rise in the Consumer Prices Index (CPI) between the date it was first calculated and the date your benefits are paid. When your benefits are paid, the revalued amount of the pension debit will be deducted from your retirement benefits.
If you are paying in to the LGPS in your current job, you can pay extra contributions to increase benefits. This could help make up for any loss of pension. Find out further information in Increasing benefits in the LGPS.
You can still transfer your remaining benefits to another pension arrangement on leaving the Local Government Pension Scheme (LGPS).
The reduced value of your benefits after the pension debit has been deducted will be used in assessing the value of all your benefits for the lifetime allowance. If the lifetime allowance is exceeded, you become subject to a tax charge. Most members' pension savings will be significantly less than the lifetime allowance. If you are a high earner affected by the lifetime allowance, a pension debit may affect any lifetime allowance protection you may have. You can find further information in Tax controls and pensions.