Divorce or dissolution of civil partnership and the effect on pension rights
In the event of divorce, nullity, judicial separation or dissolution of civil partnership, a court may order a pension scheme to pay all or part of a member’s entitlement to pension to his/her former spouse or civil partner. This could be in accordance with an “earmarking” order or a “pension sharing” order.
An earmarking order could apply to all or part of your retirement pension, potential lump sum, or possibly your death grant. If you have already retired, the order may require immediate payment of your pension to your former spouse or civil partner. If you are an active or deferred member the order would not have effect until the benefits become payable.
A pension sharing order would have immediate effect. The court would instruct that a percentage of the value of your benefits should be deducted to provide “pension credit rights” for your former spouse or civil partner. The pension credit rights would remain in the NFPS until he/she is eligible to draw them (at age 65). The pension credit can be commuted to provide a lump sum.
It cannot be transferred to another pension arrangement.