Pension Bill Benefits Divorce
Published / Last Updated on 10/01/2008
Pension Bill Benefits Divorcees
Pensions Bill proposals to end the different treatment of pensions ‘safeguarded rights’ on divorce will benefit divorcees.
Once the proposals are brought into force, shared rights that derive from contracted-out of ‘SERPS’ or the State Second Pension S2P, known as safeguarded rights will be treated in the same way as other shared pension rights. This will allow divorced spouses access to tax-free cash and an early pension.
Other clauses in the Pensions Bill allow schemes in default, covered by the Pension Protection Fund to now be shared as well.
Our view
This would appear a simple and logical move. All pension rights on divorce should be treated the same.
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