Home Personal Finance Finance delays for divorcing teachers and NHS staff as pensions recalculated

Finance delays for divorcing teachers and NHS staff as pensions recalculated

by TodayDigitNews@gmail.com
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  • by Claire Ellison
  • BBC news

image source, Louise Harris

image caption,

Former Teacher Louise Harris Says Divorce Arbitration Pending Due To Change

Divorced teachers and NHS workers face delays in financial settlement while the Treasury recalculates public sector pensions.

Both current and retired staff have been affected, and thousands of divorcing couples could be affected “severely and dramatically,” lawyers said.

One woman told BBC News she was not expecting such a change and has not been able to return home.

The Treasury Department announced the postponement in March and promised a resolution by the summer.

Only teachers and NHS workers are currently affected, but police, firefighters and military personnel are expected to be the next to be affected.

Louise Harris, 41, of Kessgrave, Ipswich, said the recalculation of her pension’s “cash equivalent transfer value” (CETV) means her children are now locked in inadequate homes. Then speak.

“It’s taking a toll on my mental health as well as my children,” the former teacher told BBC News.

“My family is forced to live in an inappropriate space. The unexpected introduction of this is unacceptable.”

When a couple separates, they finalize their financial arrangements through consent orders, which are legally binding agreements reached between spouses based on the value of their current assets.

Both parties must provide details of property, savings and pensions they own.

If you receive a public sector pension, the only way to ascertain its present value is to request a Cash Equivalent Transfer Value (CETV).

In March, both the NHS and teachers’ pension schemes temporarily suspended CETV calculations pending a new “factor” – the complex mathematical table used to calculate pension amounts.

‘Big problem’

James Brien of Easy Online Divorce said the Treasury Department’s changes and subsequent delays have put “a great deal of unnecessary stress” on divorcing couples.

“It all started when some teachers told us they couldn’t provide pension figures because of the embargo.

“The phone keeps ringing as more and more people become aware of this big problem.

“For most couples, their pension is their biggest asset after their home, so this delay creates a lot of unnecessary stress and anxiety.

“It is possible to divorce without financial agreement, but it is risky, especially with respect to pensions, as the widow/widow loses her pension entitlement and entitlement to benefits once the divorce is complete.”

There are about 120,000 divorces a year. About 17% of employees work in the public sector.

The Ministry of Finance said on March 30 it had announced changes to the calculation of the public sector pension CETV.

“Following the announcement, CETV calculations were temporarily suspended to allow time to update the guidance to reflect the changes,” the official background document said.

“The Treasury Department issued guidance on April 27, 2023, ending the suspension,” the document said, but lawyers are still slowing the process and thousands of divorcing couples will continue to live their lives. is no longer possible.

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