Author: Maria Riccio (1999)

Maria Riccio
Paisner & Co
(From Issue 7,April 1999)

The current treatment of pensions on divorce is widely considered unacceptable.  The signifi­cant limitations of the current “earmarking” provisions led the Government last year to re­think the treatment of the pension rights on di­vorce and annulment to ensure flexibility and choice.  This resulted in June with the publica­tion of the Pension Sharing Bill with public consultation papers.

Not unsurprisingly, the detailed draft proposals for the pension sharing process were complicated and has different procedures for the different jurisdictions within the UK. Following the consultation, the Social Security Select Committee published its report on 28 October 1998 raising issues echoing those raised by the respondents to the exercise. In general the Committee and the respondents have been firmly in support of the principle of pension sharing but it has led to further changes. The Government have now consoli­dated the original proposals in the Welfare Reform and Pensions Bill introduced on 10 February 1999.