£25 Actuarial Report values a defined benefit scheme. It takes only 10 minutes online and gives you a 5-page report signed off by an accreted actuary click here
Pension values 30% greater than the CETV.
On divorce find out if the provider quote values the pensions fairly. Start here by comparing some valuation examples
The £25 Actuarial Report should only be used where the pension is a Defined Benefit (final salary) pension scheme. It uses an Express Pension Valuation (EPV) online system to get an appropriate value of a pension up to 30% more than the CETV, to help a suitable divorce settlement, or to justify that the cost of a Bespoke Report is proportionate.
It can be used for the following types of schemes:
•
Pension schemes for public service employees
•
Most private sector defined benefit (final salary)
pension schemes
It is appropriate to use in the following circumstances:
When Form E's are exchanged
It is important to check the information from the other party is complete and accurate. The CETV undervalues defined benefit (final salary) pensions and an appropriate valuation should be obtained to understand the true financial position.
When determining settlement options
In ancillary relief cases when determining which option of offsetting, attachment or pension sharing should be used, it is better to work with appropriate valuations rather than inappropriate CETVs.
Collaborative proceedings
Where the parties are working together to resolve their financial matters the
£25 Actuarial Report provides a cheap and appropriate valuation of pensions that can be sufficient for their purposes. However, when dealing with pensions of significant value a Bespoke Report is recommended.
When the £25 Actuarial Report is not suitable
It is not appropriate to use in the following circumstances:
To value a Uniformed Services pension
The police, fire & rescue, armed forces and prison service pensions require specific valuation criteria and so are not suitable to use this report. Alternatively you should use the £50 Uniformed Services Report that applies a different calculation where an appropriate valuation of 3 times the CETV value is not uncommon.
To value a defined contribution (money purchase) pension
A fund valuation is sufficient. The CETV
normally gives this though sometimes early surrender penalties, market value adjustments or the existence of valuable guaranteed annuity rates mean that the CETV is less than the fund value.
To value a Small Self Administered Scheme pensions
These SSAS schemes are for small groups of employees who usually have greater control over their pension benefits. A share of fund basis may be more appropriate than valuing the defined benefits, requiring a Bespoke Report.
To value the State Second Pension
The State Second
Pension is defined by historic contributions and the equivalence of a CETV obtained from the DSS using Form BR20, or by a Bespoke Report.
To value "average salary" defined benefit pensions
Some defined benefit schemes have benefits formulae unsuited to simple valuation. The main example is where the pension is set as a proportion of the average salary of the member throughout their scheme membership. In this case an actuarial Bespoke Report is required.
Where the pensionholder is in ill-health
The Actuarial Report assumes an average life expectancy. If the pensionholder is in ill-health then a longevity assessment and actuarial Bespoke Report is required.
When the pensions(s) are ring-fenced and shared equally
There is no need for a valuation in these cases and an actuarial Bespoke Report should be obtained to ensure true equivalence of value to both parties. However, ring-fencing pensions will rarely be an optimal solution and full or partial offsetting alternatives should be considered, for which the £25 Actuarial Report or Uniformed Services Report can be appropriate.
For cases outside of the UK The EPV is designed specifically to value UK pension schemes in UK divorces and dissolutions. It is not suitable if the pension is not a UK occupational pension scheme, or the divorce or dissolution is outside the UK.
Disclaimer:
Information found on this site does not amount to financial advice or
legal advice. Every time you access the website you agree to be bound
by the Terms and Conditions.
If you do not agree to be bound by them, you should not use the sharingpensions.co.uk
website. Before taking any action regarding pensions, pension on divorce
or any other financial or legal matter you should seek professional
advice.
