A teachers pension on divorce is valued as a CETV, which a court can order shared; Teachers' Pensions charges for the order and for some valuations.

Whether you are the teacher or their spouse or civil partner, three questions come up: what a valuation costs, what the scheme charges to divide the pension, and what each of you is left with. Teachers in Scotland belong to a different scheme, covered near the end. If it would help to weigh the pension against the rest of your settlement, this page's short form gets you a call back, without charge, from an FCA-authorised adviser.

Teachers' pension divorce costs: the CETV and order charges

The valuation is often free. The Pensions on Divorce etc. (Charging) Regulations 2000 say divorce valuation information must be given to the member or their spouse "without charge unless" one of four things applies: the scheme supplied it in the 12 months before the request, the member has reached normal pension age, the request comes within 12 months before that age, or the member or a court required the valuation in less than three months.

Teachers' Pensions' charges sheet, with effect from 17 January 2024, lists its charges. Every figure is plus VAT: "VAT must be added to all charges".

ChargeWhen it appliesAmount, plus VAT
Transfer value (CETV)A request less than 12 months after the last CETV was issued; a member who has retired; a request less than 12 months before normal pension age, or once the member has reached it£242
Further informationAny further request, depending on difficulty and work involved£110
Pension sharing orderEvery court order received£3,290
Earmarking orderHandling the order / paying the earmarked pension£329 / £500

The £3,290 covers checking the order, HMRC checks, the former spouse's new record and "ongoing cost of administration for life"; one fee covers both the 2010 and 2015 sections. Pay only once invoiced; sharing charges "must be paid in full before the period for implementing the Pension Sharing order/agreement commences". The charges are subject to review, so before relying on these 2024 figures, check the charges factsheet linked from Teachers' Pensions' divorce page for a newer version. Who pays can be settled in the order; what a pension sharing order costs explains, with court and legal fees.

Getting a teachers' pension valued for divorce

The valuation is a cash equivalent transfer value (CETV), which Teachers' Pensions describes as "representing the cash value of the benefits you’ve accrued in the Scheme, including your pension, any lump sum and dependant’s pension." A basic estimate comes through My Pension Online or by phoning 0345 606 6166, a full one through an application form; the scheme suggests asking your solicitor which your case needs. A solicitor, the court or anyone else asking needs the member's written authority. On the divorce CETV form the member accepts that the figure is "not a guaranteed quotation".

Under the Pensions on Divorce etc. (Provision of Information) Regulations 2000, a request that includes a valuation must be answered within 3 months of receipt, or 6 weeks if the member tells the scheme, on the date of the request, that the information is needed for divorce proceedings that have already started. A court can also order a shorter period. Getting a pension valuation for divorce covers any scheme.

A CETV is one number, and the pension sits beside the home, savings and any other pensions. Seeing them side by side is easier with help: request a call-back here, and your figures get a free look, over the phone, from an FCA-authorised adviser.

Sharing a teachers' pension: from draft order to new records

Teachers' Pensions wants the draft order and annex before the court seals them, and will not implement an order that contravenes its regulations. Its March 2024 factsheet sets these drafting rules:

  • The share is a percentage of the CETV. It "must not be a monetary amount, unless the Order was obtained in Scotland".
  • Different percentages for the 2010 and 2015 sections need two annexes; an annex naming only the "Teachers’ Pension Scheme" shares the member's entitlement in both.
  • The scheme cannot apply pre-conditions written into an order.
  • Sharing is not allowed where the benefits are already earmarked, and compensation paid because of premature retirement cannot be shared.

After sealing, Teachers' Pensions needs the sealed order and annex, a sealed decree absolute (or dissolution order) and the former spouse's birth certificate, original or certified by a solicitor, then invoices its fee. The order takes effect on the later of the decree absolute and 28 days after the sealed order; if either of you dies first, it cannot be implemented. Then, "Within four months of receiving all relevant information", the scheme reduces the member's record, creates one for the former spouse, and tells a retired member of any overpayment. See the pension sharing order timeline.

A retired teacher is paid in full until the share goes through; the cut is then backdated to the effective date and the overpayment recovered from later payments (see sharing a pension in payment). Members affected by the Transitional Protection changes must also make a choice about service from 1 April 2015 to 31 March 2022.

The ex-spouse's side: a pension credit for life

The former spouse becomes a pension credit member with their own record (a second one, if they are already a member, whose own benefits are untouched). The pension is paid for life and rises with the cost of living, whether or not they remarry and even if the teacher dies first. It is not a mirror image of the member's loss: the factsheet warns that, because of the factors used, it "will not exactly replicate" what the member gives up.

The CETV, and so any percentage, can move while the divorce is finalised, for instance if the member's service or salary record changes. What a particular percentage would pay you at retirement is a question to put to an adviser: complete the form and the call that follows costs nothing.

  • Pension age: the same normal pension age as the member, which the factsheet gives as 60 or 65 (65 for a member with both a 60 and a 65 pension age).
  • Earlier payment: possible after 55 if the member had teaching employment on or after 30 March 2000, not before the date of the order, and "actuarially reduced for life".
  • Limits: someone who is only a pension credit member cannot transfer in or out, or nominate anyone to receive the pension after their death.

Teachers in Scotland: SPPA, not Teachers' Pensions

Teachers employed in Scotland are enrolled in the Scottish Teachers' Pension Scheme 2015, and some have earlier service in the Scottish Teachers' Superannuation Scheme, which closed to new members on 1 April 2015. The Scottish Public Pensions Agency (SPPA) administers both, so the Teachers' Pensions charges above are not theirs; SPPA's fees are in its own application forms. SPPA says valuation requests "must be made in writing", giving the marriage and separation dates and stating that they are for divorce, and can take up to three months. Under Scots law its CETV counts only rights built up during the marriage, and it recommends expert legal and financial advice before agreeing a share. See pensions on divorce in Scotland.

For other schemes, see NHS, armed forces and police pensions, or the general rules in pensions on divorce.

Teachers' pension and divorce: other questions

Can a teacher's pension be earmarked instead of shared?

Yes, but only through an order from a UK court under the Matrimonial Causes Act, not an out-of-court settlement. The 2024 sheet charges £329 to handle the order and £500 to pay the earmarked pension, plus VAT; sharing compared with earmarking sets out the differences.

Does the ex-spouse lose the pension if they remarry?

Not under a sharing order: the pension credit is paid for life regardless. An earmarking order stops applying to an earmarked pension if the former spouse remarries or forms a new civil partnership, though an earmarked lump sum is unaffected.

Can an order made abroad share a teacher's pension?

No: overseas pension sharing orders are not accepted. If the divorce is recognised in the UK, though, a party to it can obtain a UK order and annex to share the pension.

Sharing, offsetting against the house and earmarking each leave you somewhere different years from now. To see how each route might play out for you, leave your number on the enquiry form; the FCA-authorised adviser who calls charges nothing for that conversation.

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