Pension Sharing on divorce was introduced in December 2000 by Welfare Reform and Pensions Act 1999 thereby replacing Pension Earmarking.
Pension Sharing Order
In simple terms, if a pension fund is included within any financial agreement on divorce, the Court can issue a Pension Sharing Order to be served on a pension scheme to share the pension between parties.
What if the Pension Scheme is Insolvent?
Pensions Act 2008
The Pensions Act 2008 created the Pension Protection Fund (PPF). In 2011, three sets of regulations dealt with the issue of pensions and divorce, defined benefit schemes and when they become insolvent and move to the PPF.
Compensation Sharing Order for Divorce on or after 06/04/2011
The above regulations gave the Courts in England and Wales (not Scotland/Northern Ireland) the same powers to issue pension sharing orders but as the PPF is not a fund, it is ‘compensation’ then:
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