After divorce, are the earmarking benefits to the former spouse at risk?
There are significant risks to the former spouse and earmarked benefits could be lost or reduced. The scheme member could choose to stop the earmarked pension arrangement and this would deprive the former spouse of a larger pension at the members retirement age. The earmarking order could be varied at a later date but there would be an associated cost to the parties. Another risk is that the member can choose to defer taking the benefits until a later date so the former spouse may have to wait for the members 75 birthday before receiving the earmarked benefits. Further risks are that if the scheme member died before taking the retirement benefits the earmarking order would no longer apply and the former spouse would not receive any benefits either in the form of a pension income or tax free lump sum and also the earmarking order will be terminated if the former spouse re-married.
Related Questions
- If I am entitled to receive benefits from my spouses pension plan based on the terms of a divorce or separation, what should I do to make sure my rights are protected?
- Why can a spouse still maintain health insurance benefits in a divorce from bed and board?
- Is there any time limit for a divorced spouse to apply for COBRA benefits?
