Case Study 2 - The Undervalue Cash Equivalent Transfer Value

Background

Our client, Mr S approached us with a cash equivalent transfer value (CETV) for his ex wife’s pension valued at £90,000.
His pension had been valued significantly higher but both parties were members of the same pension scheme.

Concerns

He felt that the current CETV significantly undervalued the pension benefits of his ex wife.
His pension was in payment and his cash equivalent of benefit (CEB) calculation was overvaluing his pension benefits.

What We Did

We instructed an actuary to independently and professionally assess the current value of the pension.
We reviewed the CETV to ascertain what benefits it took into account.

The Results

Increased the valuation to £145,000.
He was able to enter the negotiations with more confidence knowing that the pensions had been independently and expertly assessed.
Ultimately, he was able to defend his pension benefits by increasing the value of her benefits.

What Our Clients Say...

He is able to put complex pension issues into plain English...

“I always turn to Phil when dealing with a financial settlement where pensions are involved as pensions are a complex area and good legal advice needs to be in conjunction with sound financial advice. Phil is always available at the end of the phone or email to offer specialist pensions advice right from the outset of a case.

He offers help with regard to whether a report from an actuary is required, if so he can advise on who to use, help with the drafting of the letter of instruction, advise upon the contents of the report upon receipt and then where a client should place any pension credit. He is able to put complex pension issues into plain English and ensures not only that clients get the best possible outcome but that they understand the process from beginning to end and what the effect a pension sharing order means to clients in real terms.”

Victoria Melling - Partner, Family Department, Stephensons Solicitors LLP