My personal circumstances have changed, how will this affect my pension?
If you get divorced, there are two important points that you should note:
- your ex-spouse will no longer be entitled to any survivor pension, should you predecease him/her, but
- children’s’ pensions will continue to be payable to any eligible children in the event of your death
The cost of complying with any Court order imposing obligations on NPPS may be recovered directly from you. You should also note that in the event of a financial claim in proceedings for divorce, judicial separation or nullity of marriage, the police authority are required, if requested, to provide a statement of the cash equivalent transfer value of your pension rights from the police authority to enable the Court to take into account the pension entitlement in the settlement of financial claims.
The Court may offset the value of your pension rights against any other assets or, in divorce or nullity proceedings, it may issue a pension sharing order. In financial claims arising from proceedings for nullity, judicial separation or divorce a Court may make an earmarking order against your pension. If the Court issues an earmarking order, the order may require that when your benefits come into payment your ex-spouse should receive one of, or a combination of, the following benefits:
- all or part of your pension,
- all or part of your lump sum,
- all or part of your death grant paid in the event of your death in service.
An earmarking order against pension payments (but not lump sums unless the order so directs) will lapse automatically on the remarriage of your ex-spouse, and your full pension will be restored to you. Pension payments to your ex-spouse cease on your death.
If the Court issues a pension sharing order, a percentage or specified monetary value of your pension rights accrued during your marriage will be allocated to your ex-spouse at the effective date of the order, or the decree absolute if later. Your pension, your lump sum and survivors’ benefits will be reduced. Your ex-spouse will hold pension credit benefits in NPPS in his/her own right which will become payable when he/she is 65. The reduction to your pension is called a pension debit.
The dissolution of civil partnerships gives rise to the same position as divorce.