pension adjustment order -defined benefit

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kateball

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Looking for some advice for my brother who has just got divorced and there is a pao over a defined benefit scheme relating to an old employment where he worked for about 8 years. He is aged 53 and she is 47. its split 50/50 between him and his ex.

He now wants to transfer his share of the pension out of the fund and invest in a stand alone pension. Some questions he asked me but i couldnt help

Does he have to inform his ex wife?
Does she have any say ie can she refuse?
What happens her 50% - can she stay in the existing pension scheme - or is that a bit weird given she isnt an ex employee?

Thanks in advance
 
Hi Kate

I haven't dealt with a PAO in real life, just studied them for various courses but as far as I am aware, once the PAO is granted, he can do what he wants with his portion and does not have to tell his ex wife. The trustees will be aware that there is a PAO on his retained benefits and will only transfer out his portion.

Her 50% will stay there if that is what she wants. It is up to the trustees to manage it and it doesn't matter that she never worked there.


Steven
www.bluewaterfp.ie
 
Thanks Steven - he called the pension scheme today and was told that the scheme wouldnt retain the ex-wife as a deferred pensioner . They said that if the main member transfers out - then the whole of the benefits will be paid to the new pensions scheme and it would be up to the new provider to split the pension as per the PAO.

This doesnt seem right? We both thought it was a simple matter of setting up an individual PRSA with his share of the pension, and leaving her share intact in the DB scheme. I've recommended he speak to a financial advisor. I will update here with the outcome. Any other views or advice on this?
 
The trustee's will deal with the POA when her solicitor requests that the assets be transferred to a new arrangement. She will need to speak with a financial advisor to arrange a new BOB or if she is in current pensionable employment she may be able to transfer the proceeds to her current scheme provided the trustees allow this.

As with your brother he can if he so chose's to, transfer the benefits to another pension arrangement after his ex has transferred.

This is the way it is normally done as if he wanted to transfer the full value of his DB scheme, his ex's solicitors would need to be notified and his ex would have to agree to this transfer. So it is a lot cleaner to look after his transfer after the POA has been completed.
 
Thanks Baracuda

The PAO is already in place and the trustees of the DB scheme have been notified by the solicitors.

My brother spoke to the trustees and they informed him that if he wishes to transfer his share out of the scheme then he needs to transfer the whole fund (ie both his share and the exs share) to a new arrangement and the new trustees will look after the PAO - could that be right?

I assumed the current trustees would ensure the ex's share is separated before the member transfers his share out of the scheme. Is the separation of the benefits not the duty of the existing DB trustees? At what stage are the benefits separated?
 
Your brother should ask for a copy of the scheme rules, which he is entitled to. See what it says in there about PAO's.
 
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