Effect of the member retiring before the order is made
If a pension share is implemented before a member retires from a pension scheme, the ex-spouse may receive some of their pension credit benefits as in the form of a cash lump sum at retirement in addition to receiving a pension income.
If a pension share is implemented after a member retires from a pension scheme, the ex-spouse is only permitted to receive benefits in the form of a pension income. No benefits may be taken as a lump sum at retirement.
If a member is about to retire in the next few months and it is unlikely that the pension sharing order will be implemented prior to the retirement taking place, the ex-spouse needs to claim a portion of the lump sum received by the member on retirement as well as seeking a pension share of the residual pension income. Division of the retirement lump sum in this case takes place by agreement in the Consent Order or is a point that appears separately in the Court Order. The lump sum division is not dealt with by way of a pension sharing order as once this has been paid out to the member on his retirement it no longer forms part of the residual pension assets.