Teachers Bring Legal Action Against Teachers’ Pensions for Delays in CETV Calculations

Many teachers have faced significant delays in progressing their divorces because of the delay in Teachers’ Pensions providing Cash Equivalent Transfer Values (CETV) for their pensions. 

There is a statutory obligation for pension providers to deliver a CETV within three months of a request. However, Teachers’ Pensions’ have taken over 12 months to provide some CETVs.

Obtaining a CETV is generally one of the first steps in resolving the financial matters arising from a divorce. Both parties will gather all their financial information in a document known as a Form E, which should include a recent CETV for each pension they hold. 

If there are significant pensions, the parties may also obtain a report from a Pension on Divorce Expert to help determine how their pensions should be treated in their financial agreement. 

Ideally, the parties should have a full picture of both of their assets and liabilities so that they can come to a financial agreement that is fair and reasonable. It can, therefore, be very difficult to progress with a financial agreement without a CETV, especially as pensions are often one of the parties’ largest assets. 

This has been the problem faced by many teachers affected by the backlog at Teachers’ Pensions. A group of those affected, represented by the NASUWT union and the law firm Leigh Day, have now brought a claim against Teachers’ Pensions. This case may lead to important developments for anyone with a Teachers’ Pension who is trying to reach a financial settlement on divorce. 

For more information on financial remedies on divorce, please contact Rebecca Curran, Paralegal in the Family Law Department at SE-Solicitors, on 01295 204055, or by email at rcurran@se-solicitors.co.uk