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Pension Sharing Order

If the Court issues a Pension Sharing Order, or your benefits are subject to a qualifying agreement in Scotland, 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 his/her own right.  They can be left in the Scheme and are normally paid from age 65 or can be 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 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.

You may be able top up your benefits by buying extra Scheme pension, paying Additional Voluntary Contributions (AVCs) or Free Standing AVCs (FSAVCs), or by paying into a concurrent personal pension plan or stakeholder pension scheme in order to make up for the benefits 'lost' following a Pension Share.  You can still transfer your remaining benefits to another pension arrangement on leaving the LGPS.  If you transfer within the LGPS, your new fund will reduce your benefits by the Pension Debit at retirement.

Link to Scottish Government Website