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Pension Sharing on Divorce to include the Pension Protection Fund |
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As you may already
be aware, the Pension Protection Fund was set up to offer a safety net for
members of final salary schemes when the employer becomes insolvent. If the
scheme qualifies for inclusion in the PPF the benefits are then classed as
compensation and therefore cannot be considered for pension sharing on
divorce.
Following lobbying
from the Equal Opportunities Commission, amongst others, the Government has now
indicated that they intend to change the current legislation to address this
issue and allow PPF benefits to be shared on divorce. This will obviously be
very good news for women who are currently less likely to have substantial
pension benefits in their own right. We now just await the date.
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