Benefits following an Internal Share
Example, assuming a husband and a wife where the husband’s pension is being shared
- Final Salary Pension Scheme (husband aged 50, wife aged 50)
- Normal retirement age in the scheme is age 60
- CEV (Cash Equivalent Value) of the husband’s pension = £100,000
- Accrued pension to the husband from age 60 = £10,000 p.a.
- 40% share to the wife
- Pension credit granted to the wife = £100,000 x 40% = £40,000
- Credit pension secured for the wife in the Scheme from age 60 is £3,500 p.a.
- This credit pension will receive revaluation increases from the present time until the wife’s 60th birthday.