Delay to Public Sector Pension Valuations: What It Means for Divorce and Financial Remedy Proceedings

Posted
AuthorSam Miles

If your divorce involves a public sector pension, you may be told about delays in obtaining up-to-date pension valuations. These delays can affect the timing of both your divorce proceedings and financial settlement. We’re seeing this across a range of cases right now, which is causing understandable frustration.

Fortunately, in most instances, our team can continue to move matters forward while the pension figures are being prepared.

Here is an overview of why pension valuations are delayed and what this may mean for you.

Why are public sector pension valuations delayed?

The issue comes down to a change in the SCAPE discount rate (Superannuation Contributions Adjusted for Past Experience). This rate is used to calculate the Cash Equivalent (CE) value of public sector pensions.

Because the rate has increased, all public sector pension schemes must update their systems before they can issue new CE valuations.

What does this mean for divorce and financial remedy cases?

If your case involves pension sharing or pension offsetting, you may experience delays at several stages of the process.

Slower access to pension valuations - We expect delays of several months in some cases before updated CE figures become available. This can slow the early stages of financial disclosure and negotiation.
Delays in financial remedy proceedings - Where pension information is central to negotiations, cases may take longer to progress.
Pension sharing orders may take longer to implement - Even where a settlement has already been agreed, the implementation of pension sharing orders may be delayed while schemes work through their backlog.

Will this affect the outcome of my divorce settlement?

In many cases, the overall outcome will not change significantly. However, we do see a greater impact in certain situations, including:

Cases involving the Local Government Pension Scheme (LGPS)
Pensions already in payment or accessed early
Cases involving a significant age difference between spouses

In these situations, accurate pension valuations can have a more noticeable impact on the overall fairness of the settlement.

How are we managing these delays?

At Warner Goodman LLP, we are continuing to progress cases wherever possible using existing pension information. We are also working closely with actuaries and pension specialists to minimise disruption and avoid unnecessary delay.

Where we can move matters forward, we will. Where we need to pause, we will explain clearly why and keep your case under active review.

What should you do if your case is affected?

If you are a client of Warner Goodman and your divorce involves a public sector pension, here’s what we recommend:

Don’t panic - We can often continue progressing your case using the information already available.
Gather existing pension information - If you already have pension statements or older valuations, share them with us as early as possible. Even if they are not fully up to date, they still help move things forward.
Expect some delay - If your case relies on a new public sector pension valuation, delays are unfortunately outside your control.
Take advice before agreeing settlement terms - We strongly recommend seeking legal advice before finalising any agreement where pension values are uncertain or incomplete.
Stay in contact with your solicitor - We’ll keep you updated and advise whether your case can continue or whether it is better to wait for updated figures.

Need advice about pensions in divorce?

If you are going through a separation or divorce and a public sector pension is involved, it’s important to get clear advice early. Pension issues can be complex, and timing can make a real difference to outcomes.

If you’re unsure how this delay will affect your case, we’re here to help you understand your options and keep things moving as smoothly as possible.

Phone: 023 8063 9311
Email: enquiries@warnergoodman.co.uk