It is only two more months to wait until the latest Pension Bill comes into force and brings and end to the lack of equality for divorcees receiving pensions sharing orders.

Safeguarded Rights is the name given to the part of the pension fund built up by National Insurance rebates, usually called Protected Rights. But as soon as these Protected Rights are subject to a Pensions Sharing Order and transferred into a private fund of a divorcee they become known as Safeguarded Rights. The only snag is you can’t currently take 25% of this fund as a tax free cash lump sum at retirement.

However, by the end of October 2008 the anomaly will be gone. This will have a significant impact on people who have Safeguarded Rights in their pension portfolio and have had to use other means to fund a future cash lump sum at retirement.

If you feel you might be affected by this you should contact us for further information