BGCM EC May 2017

14. DIVORCE OR DISSOLUTION OF A CIVIL PARTNERSHIP

If you are getting divorced or are dissolving a Civil Partnership, your pension benefits in the Scheme may be taken into account in any financial settlement between you and your spouse or Civil Partner.

There are three basic ways in which pension rights can be dealt with:

 Offsetting, where the value of the member’s pension rights are taken into account when working out the couple’s assets, but the pension itself is not divided. The member remains entitled to the pension in full, but its value is set off against other assets (such as the couple’s house) in such a way as achieves a neutral result.  Pension earmarking, where a proportion of a member’s pension, or a proportion of a member’s death benefits are assigned to his or her spouse or Civil Partner. When the member retires (or dies) the assigned portion is paid to the spouse or Civil Partner.  Pension sharing, where the member’s pension is valued and then divided between the member and his or her spouse or Civil Partner. This means the spouse or Civil Partner acquires immediate and separate pension rights in the Scheme. If the Trustees permit it, the spouse or Civil Partner can become a member of the Scheme in his or her own right. At present the Trustees don’t offer membership to ex-spouses or Civil Partners, but they will transfer the value of their pension sharing rights to another pension scheme. The law in this area is complicated. If you are getting divorced or are dissolving a Civil Partnership, it is essential for your own interests that you contact the Trustees to obtain more information regarding your Scheme benefits.

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