As a teacher, I recently went through a challenging situation during my divorce proceedings due to issues with my pension provider, Teachers’ Pensions. I requested a cash equivalent transfer value (CETV) in June to submit to the court as part of the process. However, I received a letter stating there may be delays in valuation due to changes in pension calculations. After a frustrating hour-long call, I learned there was no set timeframe for completion, causing a roadblock in finalizing my divorce unless my husband waived his right to a portion of my pension.
This situation is not unique to me, as many other women in the teaching profession are facing similar challenges. With high divorce rates and more women teachers than men, the bureaucratic obstacles are causing distrust and strain in many relationships. The uncertainty of when the valuation will be completed adds an extra layer of stress during an already difficult time.
The root of this issue lies in Transitional Protection, a policy from 2015 that allowed older public sector employees to stay in final salary pension schemes while younger colleagues were moved to less lucrative options. This was deemed discriminatory in 2018, prompting the government to make changes. As of October 2023, pensionable service between 2015 and 2022 must be recalculated, leading to delays in pension valuations needed for divorce settlements.
Lawyers like Kristie Silsby have seen firsthand how these delays impact divorcing clients, leaving them stuck in limbo for months without the ability to negotiate financial settlements. The teachers’ pension is a significant asset for many, making it crucial for divorce proceedings. Despite the government setting a three-month limit for processing CETVs, many individuals are waiting much longer.
Capita, the company behind Teachers’ Pensions, has faced scrutiny for these delays and will no longer be running the scheme after 27 years. The Department for Education attributes the delays to IT processes and is working to resolve the issue promptly. Teachers in need of a CETV for divorce purposes are encouraged to reach out to Teachers’ Pensions directly, although this step may not guarantee a quick resolution based on past experiences.
In conclusion, the challenges faced by teachers and others dealing with pension-related issues during divorces highlight the need for smoother processes and quicker resolutions. The emotional toll of prolonged delays and uncertainty can further strain relationships and prolong the healing process for individuals involved. As changes are made to streamline pension valuations and improve efficiency, it is essential to prioritize the well-being of those impacted by these bureaucratic hurdles.
