22 Aug 2011, 4:22 pm
Industry body the National Association of Pension Funds (NAPF) has updated a table and produced a new flowchart showing its recommended charges to be used by private sector occupational pension schemes when providing information in relation to, and implementing, pension sharing orders for their members.
Pension sharing orders were introduced in 2000 and can be granted by a court on divorce or nullity of a marriage or dissolution of a civil partnership. They allow a pension scheme member's former spouse or civil partner to claim against the member's pension fund without having to wait for the member to retire.
A pension sharing order creates a pension debit against the retirement benefits of the pension scheme member. The member's former spouse or civil partner will receive a pension credit of the same value, which can be transferred into another scheme of the spouse's choosing.
Payment of implementation and administrative charges to the pension provider will normally be considered as part of the divorce settlement.
The charges outlined in the guidance are "indicative", according to the NAPF.
"Schemes may feel that it is appropriate to raise charges that are higher or lower than those stated, depending on... the likely amount of work involved in complying with any member's request," the guidance says.
