The value of pension assets has been taken into account in divorce and related financial settlements for many years. From 1995 the "earmarking" of pensions became possible and with effect from December 2000 the Welfare Reform and Pensions Act 1999 introduced the concept of pension sharing at the time of divorce as part of an agreed settlement. Following the introduction of the Civil Partnership Act 2004 with effect from 5th December 2005 the same position applies in relation to the dissolution of a civil partnership. As part of the divorce or dissolution process the assets of a marriage or civil partnership are identified and agreement is reached, and/or a court order is made, as to how these assets or their cash equivalent value are to be shared.

Pension rights accrued by either or both parties during the period of marriage or civil partnership may now be shared based on a valuation (Cash Equivalent Transfer Value - CETVĀ or Pensioner Equivalent Transfer Value - PETV) of pension benefits provided by the SPPA.

Please note that the pension schemes administered by the SPPA on behalf of the Scottish Ministers are unfunded public sector final salary schemes backed by the Treasury and as there is no fund we use a set of factorial tables and formulas supplied by the Governments Actuaries Department (GAD) to calculate the CETV or PETV to provide an estimate of what would be available for sharing if a fund existed.

Link to Scottish Government Website