Implementation Services
Implementation of Pension Sharing Orders
The implementation of a pension sharing order can be fraught with problems, which unfortunately many IFA’s do not understand, which is evidenced in the recent Pensions Ombudsman determination of Mrs N v Lloyds Bank Pension Scheme No. 1 (Ref PO-6972), when it was not Lloyds Bank who made the mistake but Mrs N’s IFA by not understanding the process and timescales.
We are able to assist with the project management of the implementation.
Whilst Clive Weir is a Chartered Financial Planner, and have over 20 years’ experience of advising clients CW Pension Consultants Ltd is not regulated to provide financial advice.
On some occasions, we are approached to assist with an implementation having previously acted as a single joint expert, and whilst we would be delighted to assist by providing a referral to a specialist IFA, it is always with the prior agreement of all the parties to ensure that it is felt not to be a conflict of interest.
Implementation of Pension Sharing Orders - Public Sector Schemes
If a pension sharing order is awarded in respect of public sector schemes such as the Police, NHS, Armed Forces and Teachers, then the former spouse is made a member of the scheme in their own right by way of shadow membership – there is no need for a ‘financial product’.
However, the implementation is not as straightforward as it may seem – there is still a process that has to be followed which may involve both parties and take several months to complete.
We have seen many cases where the order is not correctly implemented. This is mainly due to the scheme being under no obligation to chase / remind for the completion and return of any outstanding requirements. They effectively close the file until they receive a response.
For this reason, we provide a service to the client to project manage the implementation for a fixed cost, therefore taking away the stress and worry from the former spouse and allowing them to focus on other more important issues.
It also provides you, as the family lawyer, with the peace of mind that the pension sharing order is being dealt with professionally and will be seen through to completion – or at least it was offered to the client!