Public Sector CETVs

HM Treasury has just issued new guidance on the discount rate to be used for calculating CETVs for public sector pension schemes. At least 2 schemes are ceasing calculation of CETVs for the time being, whether for information requests or for implementation of PSOs.I understand HM Treasury has said that for divorce cases where scheme administrators have already provided CETVs on the basis of old guidance but no final determination has yet been made

http://www.hm-treasury.gov.uk/tax_pensions_guidance.htm

Can you explain what this means?

Indeed come on Ruby explain it

Mmm interesting post Ruby!

I'm a civil servant and received my CETV last December when I started mediation so this may have an impact on any settlement.

This morning I rand My Civil Service Pension, the provider, and asked. Guess what?, they had no idea as the guidance only came out on the 28th.

They suggested that as I already had my CETV this would have little impact but to be fair to the guy I spoke to he didnt sound that confident! He suggested I email them and ask.

Confused

The only two sectors [to date] to announce that they have actually suspended calculations are the Police and Fire Service.

I would imagine that all other PS will follow suite.

My Public Sector Pension was CETV valued in February,does this mean it would be in my interest to have it revalued ?. My agreement is a couple of weeks from going through. So lets say my CETV was valued at 50k does this mean the CETV would be lower, say 45k or more, say 55k ?

Thanks in advance...........

Firstly, ­base­d on the length of time it took the public sector schemes to staart processing cetv requests following the switch to CPI in the 2010 budget, I think that you can expect a delay of several months.
My understanding is that the schemes will process pension sharing orders which were received before last week.
In terms of the impact, for younger members the change is likely to increase cetvs for younger members (about 20% at age 35), broadly neutral at around age 50 and will decrease cetvs at older ages. This is all ­base­d on the assumption that no other parts of the basis are reviewed other than the rate of interest as specified in the guidance.
In the case of pension shaing, the overall impact will be minimal if husband and wife are of similar ages, if there is much of an age difference then the income to the spouse may well be significantly different to that which was expected.
Hope this is of use.

Ian