P18/032/99

To each Personnel Officer

I am directed by the Minister for Finance to refer to the Family Law Acts of 1995 and 1996 and, in particular, the provisions relating to Pensions Adjustment Orders contained therein.

This letter and its appendices are being issued to assist Trustees of public service pensions schemes in complying with the obligations imposed on them by the legislation. They are not a legal interpretation of the legislation or a substitute for the Brief Guide and Guidance Notes issued by the Pensions Board; rather, they are intended to complement them.

The Family Law Act 1995, which deals with judicial separation and foreign divorces recognised as valid by the State, and the Family Law (Divorce) Act 1996, both contain provisions relating to occupational pensions. The Minister for Social, Community and Family Affairs made regulations under the Acts in S.I. No. 107 of 1997 and S.I. No. 84 of 1997, issued by the Minister for Justice, Equality and Law Reform, contains Circuit Court Rules governing Court proceedings under the legislation. S.I. No. 215 of 1991, entitled Occupational Pension Schemes (Disclosure of Information) Regulations, deals with the provision of information under Section 54 of the Pensions Act, 1990 and S.I. No. 349 of 1998 contains disclosure regulations relating to the information that must be given to members of pension schemes and their spouses under the provisions of the Family Law legislation.

Under the legislation, responsibility for compliance with the legislation in so far as it affects the administration of public sector pension schemes falls on the Trustees of the Schemes. In the public sector, unless the scheme was established under a Deed of Trust (which would name the Trustees) the Trustees are deemed to be the staff who administer the pension schemes. In practical terms, this means the officials who award pensions under the schemes. Where Departments have delegated authority to award pensions under the civil service schemes, the officers who sign the pensions awards are deemed to be the Trustees; where awards are made by this Department, staff here are the Trustees.

The legislation imposes time limits on dealing with some aspects of Family Law cases. For this reason, all cases and correspondence in relation thereto should be treated as urgent and given priority. It should also be remembered that Family Law cases are heard in camera and should, therefore, be treated as confidential and handled in a sensitive manner.

Trustees and staff involved in the administration of pension schemes should obtain copies of the relevant legislation mentioned above and familiarise themselves with their responsibilities thereunder. They should also obtain copies of the Brief Guide to the Pension Provisions of the Family Law Acts and the Guidance Notes from The Pensions Board, Verschoyle House, 28/30 Lower Mount Street, Dublin 2, Phone (01) 6131900, e-mail info@pensionsboard.ie

A notice of the date on which the Court will hear the case, where it is intended to seek a Pensions Adjustment Order, this information will be included in the Notice of Trial. It is important to note that the legislation stipulates [12 (18) of the 1995 Act and 17 (18) of the 1996 Act] that the Trustees must be notified if either party intends to seek a Pensions Adjustment Order and that, without such notification being given, it is not possible to obtain a valid order.

In most cases the only action required from the Trustees is an acknowledgement of the Notice and a statement that they do not intend to be represented at the case, though it is advisable, if the Notice is the first notification of proceedings received, to inform the parties that the Trustees will do whatever possible to assist the parties by providing information and to offer them the model PAO to assist them in framing a PAO. The prompt provision of adequate information obviates the necessity to be present at the hearings. Where, for whatever reason, it is considered that the Trustees should make representations to the Court about the case, this Department should be notified.

Appendices C and D deal with all matters relating to Pensions Adjustment Orders.

These are covered in Appendix B - Provision of Information.

If there is any conflict between the terms of a valid Pensions Adjustment Order and the rules of the scheme and/or the provisions of the Pensions Act 1990, the legislation overrides both the rules of the scheme and the provisions of the 1990 Act. In such cases, Trustees are not liable for any loss or damage caused by non-compliance with the rules of the scheme or the 1990 Act provided such non-compliance was occasioned by a direction from the court. It is, therefore, advisable to seek directions from the court in such cases. The most common instances of such conflict between the legislation and the rules of public service schemes are in the definition of a child and the payment to the non-member spouse of a pension after the granting of a decree of divorce.

The legislation provides that costs incurred by Trustees in complying with the legislation may be recouped from the parties involved. In the Civil Service, it is not intended to seek to recoup costs except in the following instances:

where a beneficiary seeks payment under a nominal Pensions Adjustment Order or

where, despite having furnished all possible information promptly, Trustees are forced to appear in court on foot of a subpoena.

All such cases should be referred to this Department.

A considerable length of time may elapse between the receipt of a valid Pension Adjustment Orders and the date on which payment under it may fall due. In some instances, the member may change employers more than once between the order being served and final retirement. It is vital, therefore, that procedures be put in place to ensure that the Trustees responsible for making payment under the order are aware of the existence of the order before payment of superannuation benefits commences.

In the case of active members, the orders should be placed on the member's personnel file and noted on any electronic tracking system used in the personnel area of the member’s employing Department/Organisation. If the member transfers to another Department or organisation, then the order should be forwarded to the new employer. If the member resigns and becomes a deferred pensioner, then a copy of the order should be placed on any pension file opened and noted on all electronic tracking systems used in the Pensions area of the Department.

Where the member is a deferred pensioner at the time the order is drafted, then copies of the order should be placed on both personnel and pension files (if two separate files exist) recorded on all electronic tracking systems used in both personnel and pensions areas of the Department/Organisation at the time of resignation.

Where the member is a current pensioner, the Pensions Adjustment Order should be placed on the member’s pension file and recorded on any electronic tracking system used by the Trustees.

In all cases, the procedures outlined in Appendices C and D for dealing with orders and making payments under orders should be followed.

All cases where Pensions Adjustment Orders are already in place should be checked to ensure that the procedures outlined above and in Appendices C and D have been followed.

Some Government Departments and Offices do not have delegated authority to award pensions to their staff and, in such cases, officials in the Department of Finance act as Trustees for pensions purposes and deal with all correspondence in relation to Pensions Adjustment Orders and related matters. However, staff frequently initiate cases by requesting information on superannuation entitlements from the Personnel Officers in such Departments/Offices, and such requests should be forwarded to this Department, together with sufficient information to allow the Trustees to complete the information form and deal with any correspondence relating to the case.

When Pensions Adjustment Orders relating to serving staff in Departments/Offices are served on the Trustees in the Department of Finance, they will be forwarded to the Personnel Officer in the employee’s Department and Office, where the Personnel Officer will be responsible for ensuring that the arrangements for recording information and tracking orders, as outlined above, are followed.

Appendix A - Terms used in Family Law Acts contains a glossary of the terms used in the legislation and explains their relevance to the administration of public service pension schemes. They should be read in conjunction with this letter and its appendices and may be issued to interested parties, such as employees and their spouses, to assist them in understanding correspondence, the effect of Pensions Adjustment Orders, etc.

Appendix B - Provision of Information covers the provision of information under the legislation.

Appendix C - Pensions Adjustment Orders explains what constitutes a valid order and details the procedures to be followed when draft or final orders are received by Trustees.

Appendix D - Payments on foot of Pensions Adjustment Orders This appendix deals with all issues relating to the payment of pensions subject to Pensions Adjustment Orders, including activation and extinguishing of orders.

Appendix E -Forms contains sample information forms, a model Pensions Adjustment Order and guidelines and notes to accompany the forms and model draft order.

This circular letter supersedes all previous instructions and guidelines issued by this Department. Departments with responsibility for awarding pensions to either civil or public servants should now, in so far as possible, deal with all Family Law matters relating to such pensions and refer only precedent cases and cases of doubt or difficulty to this Department. The letter and appendices make specific references to certain instances in which cases should be referred here.

Please bring this letter and its appendices to the attention of all officers in Personnel (including Employee Assistance Officers) and Pensions areas in your Department and associated State bodies who may be involved in the provision of information on Family Law legislation or the administration of public service (or public sector) pension schemes.

On-line copies of this letter and its appendices may be obtained by emailing breda_byrne@finance.irlgov.ie.

____________________________

Breda Byrne

Pensions Section

19 December 2001

Appendix A - Terms used in the Family Law Acts

Active Member a member of the pension scheme who is in reckonable service

Actuarial Value the equivalent cash value of a benefit (including, where appropriate, provision for any revaluation of such benefit) under a pension scheme calculated by reference to appropriate financial assumptions

Contingent Benefit benefits payable in the case of death-in-service. Such benefits can arise under both the Main Scheme (death gratuity) and the Spouses and Children’s Scheme (Spouses and Children’s pensions on death in service).

Current Pensioner a member of the pension scheme whose reckonable service has ended who is in receipt of retirement benefit from the pension scheme

Decree in the context of Family Law legislation, a decree of Judicial Separation under the 1995 Act or a decree of divorce under the 1996 Act

Deferred Pensioner a member of the pension scheme whose reckonable service has ended who is not yet in receipt of retirement benefit from the pension scheme, i.e. a person with entitlement to preserved benefits.

Defined Benefit Scheme a pension scheme in which a specific level of retirement pension is provided for (e.g. a pension of 1/80ths of retiring salary per year of service). Almost all public sector pension schemes are in this category.

Defined Contribution Scheme a pension scheme which, under its rules, provides benefits, the rate or amount of which is in total directly determined by the amount of the contributions paid by or in respect of the member of the pension scheme.

Designated Benefit the amount of "retirement benefit" payable to a member’s spouse or dependent children under a Pensions Adjustment Order.

Discharge and Variation Ordersunless an order is obtained restricting the extent to which orders may  be varied or restricted (see Section 18 of the 1995 Act and Section 22 of the 1996 Act) it is possible to vary or discharge certain orders under the Acts. Where Pensions Adjustment Orders are obtained under the 1995 Act and a divorce is later secured under the 1996 Act, the Pensions Adjustment Orders remain in force unless a Discharge Order under Section 26 of the 1996 Act is obtained.

Member spouse The staff member of the superannuation scheme

Non Member Spouse his or her spouse.

Non-variation Order Section 18 of the 1995 Act and Section 22 of the 1996 Act provide that certain orders (including Pensions Adjustment Orders relating to retirement benefits) may be varied. Orders obtained under Section 12 (26) of the 1995 Act and Section 17 (26) of the 1996 Act may restrict or exclude the application of variation orders. Such orders are frequently referred to as non-variation orders.

Normal Pensionable Age the earliest age at which a member of a pension scheme is entitled to  receive benefits under the rules of the pension scheme on retirement disregarding any such rules providing for early retirement on grounds of ill health or otherwise

Pension Adjustment Order an order granted by the court directing that a certain portion of the  member’s superannuation benefits should be paid to the member’s spouse and/or dependent children. The terms of a Valid Pension Adjustment order may override the rules of any superannuation scheme to which it refers and the terms of the Pensions Act, 1990.

Preserved Benefit has the meaning assigned to it by section 28 of the Act of the 1990 Pensions Act; i.e. the benefit payable to a member who has completed at least five years qualifying service and whose relevant employment terminates otherwise than on death but before normal pensionable age

Reckonable Service service in relevant employment during membership of any pension scheme

Relevant Employment any employment or any period treated as employment to which the pension scheme applies

Relevant Period the period of reckonable service of the member spouse, prior to the granting of the decree, which the Pensions Adjustment Order specifies is to be taken into account

Relevant Percentage the percentage of the retirement benefit accrued during the relevant period (see above) which the Pensions Adjustment Order specifies is to be paid to the beneficiary named in the order;

Residual Benefit the amount of benefit remaining in respect of the member spouse after deduction therefrom of the relevant designated benefit payable under a Pensions Adjustment Order.

Retirement Benefit benefits payable following retirement or earlier withdrawal from service (including those payable on the death of the member after retirement) under both the Main Superannuation Scheme and the Spouses’ and Children’s Superannuation Scheme, e.g. in the Civil Service retirement benefit includes retirement pension and lump sum, balancing gratuity (where it arises in cases of death after retirement), spouse’s pension payable on death after retirement, and, where the member retires before accruing enough service to qualify for pension, any short service gratuity payable or refund of contributions due.

Retirement Benefit Service means the period of reckonable service within the pension scheme  during which the benefit was earned.

Rules in Force the rules of the pension scheme in force at the date of the decree of separation or divorce (subject to any overriding provisions of the Pensions Act of 1990)

Transfer Amount A value, calculated on an actuarial basis, to be paid under a Pensions Adjustment Order if certain circumstances, such as the non-member spouse predeceasing the member spouse, arise. See Section 12 (4) of the Act of 1995 and section 17 (4) of the Act of 1996 for more detailed information.

Trustees Unless the scheme was established under a Trust Deed which names the Trustees the Trustees are the persons who administer the scheme. In most cases, this means the officials who award pensions under the schemes.

Appendix B - Provision of Information

When deciding on which orders to grant under the legislation, the Court has regard to the question of how best to ensure that adequate and reasonable financial provision for the spouse seeking the orders exists or can be made without the making of a Pensions Adjustment Order. While superannuation benefits must be taken into account in such deliberations, the making of a Pensions Adjustment Order is not mandatory, though the information supplied to the parties may be used in the Court’s decision on whether or not to grant Pension Adjustment Orders.

When proceeding under the legislation have been instituted by either party and it is intended to seek an order regarding the superannnuation benefits, each spouse is required to give the other spouse such particulars of his/her superannuation entitlements as may reasonably be required.

Where proceedings for orders have been instituted, each spouse is obliged to provide the other with such particulars as may reasonably be required. In some cases, the parties may seek such information before deciding whether or not to seek the making of orders under the Acts. In any event, the Pensions Act 1990 and regulations made thereunder provide that, in certain circumstances, the non-member spouse is entitled to be given basic information on the scheme and the member, on request, should be given detailed member-specific information, (e.g. date of entry to the scheme, pensionable salary, options on purchase or transfer of service). The non-member spouse is not entitled to such member-specific information on request.

Member-specific information may only be given to the non-member’s spouse with the member’s consent or on foot of a Court Order. No. 78 of the Guidance Notes urges Trustees to co-operate with the parties in endeavouring to facilitate the making of Pensions Adjustment Orders on a consensual basis. To facilitate this, it is suggested that Trustees endeavour to secure the member’s written agreement to the release to the non-member spouse of all information on superannuation supplied to the member.

Trustees are not legally obliged to supply information to any party on the actuarial valuation of a member’s superannuation entitlements in the absence of a Court Order. The attached sample information forms mention the actuarial information and, in order to reduce costs by facilitating the parties in making a consensual order, it is recommended that actuarial valuations be supplied if requested.

As stated above, member-specific information may only be given to other parties if the member consents or, if the member refuses to consent, on foot of an Information Order issued by the Courts to the Trustees of the pension scheme. Information Orders may also be issued to enable the parties to ascertain whether a fair settlement may be achieved by way of Pensions Adjustment Orders. To minimise costs and reduce the necessity for Court appearances, the Trustees are strongly advised to facilitate the provision of all information required under the legislation on a consensual basis.

On occasion, Trustees are served with Discovery Orders directing that certain documents (e.g. copies of the rules of the scheme, benefit entitlements) must be issued to the party on whose behalf it is issued. All documentation requested under valid Discovery Orders must be furnished.

Trustees are sometimes served with a subpoena to appear in court for the purpose of giving information on superannuation entitlements. In some instances, the issue of the subpoena is caused by the refusal of the member to consent to the release of information to the non-member spouse. When this happens, it is suggested that the Trustees should inform the party serving the subpoena of their willingness to provide the information on foot of a direction from the court. Where the Trustees have done all they could to provide all the necessary information (including updating or revising information already supplied) they should seek to have the subpoena lifted on the grounds that they have already supplied all the information necessary and, if this fails, to inform the parties they will seek all the costs allowable under the legislation, including the cost of Court appearances. If, following this approach, the subpoena is not lifted, the Trustees should take legal advice and notify this Department.

Sample information forms to be used in the provision of information under the Family Law Legislation are contained in Appendix E. Before issuing the forms, the Trustees should confirm that the information sought is required on foot of proceedings under the legislation or for use in mediation cases where proceedings are contemplated. The forms should be entered onto computer, so that an individualised, printed form can be completed for each case.

The sample information forms were designed to cover the most common cases, i.e. those where the officer involved has sufficient service to qualify for preserved (deferred) superannuation entitlements. Where, at the time the information is supplied, the member has insufficient service to qualify for such benefits, use the information form to give as much information as possible, e.g. details of scheme(s) membership, service, remuneration, conditions regarding retirement and contingent benefits payable in the event of death in service. Include in the covering letter information on any superannuation benefit not covered in the form, such as a refund of contributions, short service gratuity, etc., which would be payable in the event of the member resigning before accruing sufficient service to qualify for pension without being able to transfer the accrued service to another scheme. State the earliest date on which the member would acquire enough service to qualify for pension and, if the member acquires the minimum service before the granting of a decree under the legislation, revise the information form to give details of any superannuation benefits (pension, gratuity or survivors’ benefits) payable as a result of attaining the minimum service necessary to qualify for pension.

Frequently, pensioners address for information for Family Law cases to the Department that awarded their pensions. Such requests should be forwarded to Pensions Section, Department of Finance, together with an information form (showing details of service, pensionable remuneration at retirement, etc.) and any other information necessary for the Trustees to update the information for the case.

Section 12 (1) of the Family Law Act, 1995 and Section 17 (1) of the Family Law Act, 1996, state that the Trustees must, if so directed by the Court, supply an actuarial valuation of the member’s superannuation benefits. The valuation must be calculated in accordance with guidelines issued by the Society of Actuaries.

This Department will supply such valuations for public service scheme members if one of the parties concerned requests such a valuation or on foot of a direction by the Court; valuations will no longer be issued automatically. To obtain a valuation, the information detailed below should be sent to Pensions Section, Department of Finance, 73/79 Upper Mount St., Dublin 2

In the case of active members and deferred pensioners, valuations of all retirement benefit due, i.e. preserved pension, retirement gratuity and, where the member is in the Spouse’s and Children’s Pension Scheme, the spouse’s pension following death in retirement. Where the pension is in payment at the time of the valuation and the retirement gratuity has already been paid, the gratuity is not included in the actuarial valuation. Actuarial valuations of contingency benefits are not required under the legislation and are never given.

The following information is required

the date of birth of the member

the membership status of the member, i.e. whether an active member or a current pensioner

the sex of the member

the valuation date chosen by the Trustees

the value of each benefit on the valuation date

No other information is necessary.

Appendix C - Pensions Adjustment Orders

The legislation provides for the making of any or all of a combination of orders governing the division of assets between the parties to the separation or divorce. Under the legislation, the entitlement to superannuation benefits under an occupational pension scheme is treated as an asset and, therefore, subject to division between the parties. Where, following an application by either spouse or by a person acting on behalf of a dependent child or children, the court decides that part or all of the superannuation benefits should be divided between the parties, a Pension Adjustment Order is issued. A Pensions Adjustment Order in favour of a spouse may only be issued if the spouse has not remarried.

There are two types of benefits viz retirement benefits, which includes all benefits payable following the member’s departure from scheme membership and contingent benefits, which covers all benefits payable if the member dies while serving as an active member of the scheme. Separate orders must be obtained for each type of benefit, and, where the benefits are secured under more than one scheme, separate orders must be obtained for each scheme. Most public sector organisations have two pension schemes, the main scheme covering retirement pension, gratuity and death gratuity and the Spouse’s and Children’s scheme covering pensions payable in the event of death in service or death in retirement. In such cases, if it is the intention to divide the retirement and the contingent benefits between the parties, then a minimum of four Pensions Adjustment Orders is required viz an order to cover the retirement benefits payable to the member, an order to cover the death gratuity (which is a contingent benefit), an order to cover the spouses pension payable following death in retirement and an order to cover the spouse’s pension on death in service (a contingent benefit).

It is possible, under the legislation, to seek Pensions Adjustment Orders in favour of children. This Department should be consulted in all such cases.

The legislation stipulates that Trustees must be notified if either of the parties to the action intends to seek a Pensions Adjustment Order. Unless this mandatory notice is given, it is not possible for either party to obtain a valid order.

To be valid, all Pensions Adjustment Orders must contain the following information

The section of the relevant Act under which the order was obtained (either Section 12 of the 1995 Act or Section 17 of the 1996 Act)

The name of the scheme under which the benefit covered is payable

The percentage of the benefit to be paid to the beneficiary. The percentage may not be expressed as zero or nil and must not be greater than 100%.

In addition, Pensions Adjustment Orders relating to retirement benefit must specify the relevant period over which the benefit accrued. The relevant period must specify both start and end dates, the end date being no later than the date of the decree.

Any order that does not contain all the above information, or which attaches conditions not envisaged by the legislation to payment of the designated benefit secured by the order (such as payment to the spouse to cease when the children no longer qualify as dependants) is invalid and both parties should be so informed.

It is suggested that all Pensions Adjustment Orders received, whether final or draft, be checked against the guidelines issued with the model Pensions Adjustment Order (see Appendix E). If the orders or draft orders are invalid, then both parties should be informed they are not valid and told the reasons why they are not valid, and a copy of the model order (see Appendix E) sent to them to assist them to frame valid orders.

If the orders satisfy all the conditions for valid orders, then the parties should be told they are acceptable to the Trustees and that the Trustees will act on such orders when they receive a certified copy of the final order. The parties should also be told of the likely effect of such draft orders, and given an estimate of any designated benefit payable under such orders.

Frequently, the percentage and (where relevant) the specified period in Pensions Adjustment Orders are designed to produce a designated benefit so small that it cannot be paid. Such orders (often called nominal orders) are valid and the parties should be so informed. Since the designated benefit is of a nugatory value, the parties should be informed that the Trustees intend to note the orders but to take no further action. This does not interfere with the beneficiary’s entitlement to claim payment under such orders; however, because of the disproportionate costs involved in administering and paying such nominal orders, the parties should be informed that if payment is sought the Trustees propose to seek the costs from the beneficiary. Nominal orders are often accompanied by non-variation orders.

Both spouses should be informed that valid orders have been received and the Trustees propose to act on them. They should be given an estimate of the designated benefit payable under the orders and, in addition, the member should told the amount of the residual benefit payable under the rules of the scheme. They should be informed that such orders lapse in the following circumstances

the marriage or death of the beneficiary

the member leaving the scheme otherwise than on death in service.

The member’s spouse should be asked to inform the Trustees of any change of address or marital status and told that the Trustees will inform him/her if the member leaves the scheme otherwise than on death in service. Similarly, the member should be informed if an order lapses due to the remarriage of the non-member spouse.

The non-member spouse should be informed that s/he may opt to take a transfer benefit in lieu of the designated benefit, that such an option may be exercised at any time before payment of the relevant benefit is due to commence and payment of the transfer value is subject to certain conditions and requirements laid down by the Revenue Commissioners, the most important being that the transfer value be either paid to an occupational pension scheme to which the non-member spouse belongs or used to purchase an insurance policy approved by the Revenue Commissioners. The benefit secured by payment of the transfer value must be a pension payable for life and must commence not earlier than the earliest date on which payment of the designated benefit could have commenced. This information must be given to the spouse not later than two months after the receipt of the valid Pensions Adjustment Order.

The non-member spouse should also be informed that, in the event of s/he dying before the member, there may be an amount payable to his/her estate - the amount is calculated on the same basis as a transfer value. The importance of informing the Trustees of any change of address or name should also be stressed, because the Trustees may need to communicate with the spouse in the event of the member transferring to other employment or payment of benefit commencing early. The Trustees should also undertake to inform the spouse if the member resigns with an entitlement to preserved benefits or transfers his service to another employment.

The member should be informed that a valid order has been received by the Trustees, and that the Trustees will act on its terms. The member should be told the effects of the order and given an estimate of the residual benefits due under the order. She should also be informed that, in the event of a transfer of pensionable service to another employment, the order will, if appropriate, be forwarded to the Trustees of the second pension scheme.

Listed below are the events that trigger payments under Pensions Adjustment Orders and the payments (Designated Benefits) becoming due as a result.

Death in service - Contingent Benefit (death gratuity, spouse’s pension).

Retirement of member - Retirement Benefit (member’s pension, lump sum, short service gratuity, refund of contributions)

Death of member after retirement - Retirement Benefit (spouse’s pension, balancing death gratuity)

Death of beneficiary while the member is still serving - Retirement Benefit (transfer value)

Death of beneficiary after payment of Designated Benefit has commenced - Retirement Benefit (transfer value).

The designated benefit payable under a contingent benefit Pensions Adjustment Order is calculated as the percentage specified in the order of the Benefit specified in the order calculated by reference to the Rules of the Scheme specified in the order, as the Rules were when the decree was granted.

All payments of designated benefit under retirement benefit Pensions Adjustment Orders are calculated by reference to the following formula (see 104 of the Guidance Notes)

A x B/C x P where

A is the total amount of retirement benefit calculated by reference to the rules of the scheme at the time of the granting of the decree (i.e. changes in the scheme rules after the date of the decree are ignored for the purpose of calculating designated benefit)

B is the member’s reckonable service as a member of the scheme which is included in the period specified in the order (i.e. any period between the start and end dates specified in the order which was not reckonable service must be ignored in the calculation)

C is the member’s total reckonable service as a member of the scheme including service in excess of the maximum period reckonable under the scheme and excluding additional service, such as added years in cases of ill-health retirement, for which the member became eligible after the date of the decree

P is the percentage specified in the order.

A Pension Adjustment Order, dated 1 January 1998, the same date as the decree of divorce, provides that 40% of the member’s annual pension accrued over the period 2 January 1987 to 1 January 1998 is be paid to the member’s spouse. The member retires on 1 January 2002, having completed 42 years actual service. During the period 1 January 1987 to 1 January 1998 the member took a career break of one year. The annual pension is €24,000.

A equals €24,000

B equals reckonable service between 2/1/87 and 1/1/98, i.e. 10 years

C equals 42 years

P equals 40%

Designated Benefit €24,000 x 10/42 x 40% = €2285

Example 2

A Pension Adjustment Order, dated 1 January 1998, the same date as the decree of divorce, provides that 40% of the member’s annual pension accrued over the period 2 January 1987 to 1 January 1998 is be paid to the member’s spouse. The member retires on health grounds on 1 January 2002, having completed 35 years actual service and his pension is based on 40 years service. The member’s annual pension is €24,000, based on a pensionable salary of €48,000.

A is calculated as 35/80 x €48,000 = €21,000

B is 11 years

C is 35 years

P is 40%

Designated Benefit €21,000 x 11/35 x 40% = €2640

Payment of Transfer Values

As mentioned above, where the beneficiary of a Pensions Adjustment Order on retirement benefit predeceases the member it may be necessary to pay a transfer value, based on the actuarial value of the designated benefit that would otherwise have been paid, to the beneficiary’s estate. All such cases should be referred to this Department.

All designated benefits should be based on gross, not net, superannuation benefits, except in cases where superannuation deductions are due, in which case the designated benefit should be based on the net amount.

Judicial separation, per se, has no effect on a spouse’s entitlement to benefit under the terms of public service Spouses’ and Children’s Schemes. However, Pensions Adjustment Orders relating to spouse’s pensions are sometimes obtained in cases of judicial separation and Trustees must comply with the terms of such orders. In such cases, spouses may also qualify under the rules of the scheme for the residual benefit and this, in effect, makes them eligible for payment of the entire spouse’s pension. However, it is important to remember that the qualifying conditions for payment under a Pensions Adjustment Order are not the same as under the rules of the scheme (e.g. remarriage or cohabitation does not effect entitlement to designated benefit secured under a Pensions Adjustment Order on retirement benefit) and for this reason the two payments, while being aggregated for the purposes of calculating Income Tax due, liability for PRSI deductions, etc., should be paid as separate benefits.

In some cases, Pensions Adjustment Orders will result in payment of one benefit (e.g. member’s pension) being divided between two or more people. It is important that all such cases be cross-referenced with each other and that any tracking system used be capable of identifying all payees, whether beneficiaries under Pensions Adjustment Orders or recipients of residual benefits.

Where pensioners are required to complete declaration forms on a regular basis, beneficiaries of designated benefit should also be required to complete such forms. However, existing forms may not be suitable in all cases because valid Pensions Adjustment Orders override scheme rules and, where this happens, payment under the order will be made in cases where the beneficiary would not qualify under the rules of the scheme. One instance where scheme rules would be overridden would be the case of a spouse’s pension payable under a Pensions Adjustment Order on retirement benefit; the benefit would continue in payment were the spouse to remarry, while a spouse’s pension payable under a Pensions Adjustment Order on contingent benefit or under the rules of a public service Spouse’s and Children’s Scheme would automatically cease on remarriage. It may be necessary, therefore, to introduce declaration forms solely for issue to recipients of designated benefit.

Notes to assist Trustees in completing the information form

1. Before issuing the forms, obtain written confirmation that the information is required in the context of Family Law proceedings.

2. When completing the form, delete all unnecessary information. For example, if the member’s salary is not subject to averaging, delete all references to averaging, if the member’s pension is not subject to co-ordination, omit all references to co-ordination, net pensionable remuneration, supplementary pension and the calculation of pension increases for coordinated pensions (6, 7, 9 and Note on Co-ordination in the form refer). If the member did not join the Spouses’ and Children’s Scheme, say so (see 9 of the form) and delete all other references to Spouses and Children’s pensions. Where the scheme provides for retirement before the normal minimum retirement age in certain circumstances (e.g. Prison Service, Garda Siochana, Teachers) the earliest age at which the member in question may retire should be quoted and general information on retirement arrangements should only be supplied in so far as it applies to the individual case.

3. The information given on the form may later be used in framing Pensions Adjustment Orders so it is essential all the necessary details (correct names of schemes, date of birth of member, etc.) are shown on the form.

4. Show the start and end date of each period of actual pensionable service in the scheme. Show the dates of all breaks in pensionable service (e.g. unpaid leave, career break) and the dates and reckonable value in years and days of all part-time, job-sharing, temporary and other service which is not scheme service but is reckonable as pensionable service under the scheme. Where actual service exceeds the maximum amount of service reckonable for pension purposes, actual service, not the maximum reckonable, should be the amount stated in 8 of the form. It is essential that the information be given in this way, because Pension Adjustment Orders take account of the total service as a member of the pension scheme and the total pension secured by that service. Any doubt about the reckonability of certain service, or the amount of pension earned by actual pensionable service, should be resolved before the information is issued.

5. Ensure that, where service is stated as having been transferred from another scheme, that the member actually exercised an option to transfer such service. Where no option has been exercised, two sets of calculations (including, if requested, actuarial valuations of the transfer values) should be supplied, one based on service in the scheme and the other based on the inclusion of the transferred service.

6. Ensure that only purchased service that has been paid for on the date of valuation, or in respect of which an irrevocable option to purchase has been exercised, is included in the calculation of benefits.

8. Only Notes which are relevant to the case and necessary to understand the information given should be included in the form. In some instances (e.g. cases where only the Note on the actuarial value of the member’s entitlements is being included) it may be possible to include the Note in the body of the form.

9. Trustees should make absolutely certain that the information given on the form is accurate, and the amount of preserved pension and lump sum is correct as the latter, together with date of birth, form the basis for actuarial calculations.

Family Law Act, 1995 (Section 12)

Family Law Divorce Act, 1996 (Section 17) delete as appropriate

2. Name of Scheme(s): __________________________________________________

__________________________________________________

3. Name of member: __________________________________________________

4. Date of birth: __________________________________________________

(i) retirement benefit: ______________________________________________

(ii) contingent benefit: ______________________________________________

(iii) benefit under the Spouses and Children’s Scheme ______________________

6. Co-ordination/integration

Benefits are co-ordinated...… yes/no If yes, include Note on Co-ordination below. [If no, delete all this paragraph and all references to net pensionable remuneration in paragraph 7 and renumber other paragraphs and notes]

If ‘Yes’

a. co-ordination applies to all service ____________

b. co-ordination applies to service from ____________

7 (a) Current pensionable remuneration € _____________

Pensionable salary € _____________

plus averaged pensionable allowances

paid to ________________ in the

three years prior to __________ € _____________

Net pensionable remuneration

Pensionable salary € _____________

plus averaged pensionable allowances

paid to ________________ in the

three years prior to __________ € _____________

Less

Twice full rate of the Contributory

Old Age Pension ( * 2 = ) €______________

Actual Service as a member of the Main scheme years _____ days _____

less unpaid absences: years _____ days _____

Total actual scheme service: years _____ days _____

Other reckonable service

Transferred, years _____ days _____

Purchased years _____ days _____

Notional (e.g. professional added years)

other (specify) years _____ days _____

Accrued preserved reckonable service: years _____ days _____

9. Accrued Retirement Benefit to _____________

(a) Preserved pension

Pensionable remuneration € ______ *1/80* ______

(or, if applicable, use Net Pensionable Remuneration)

(b) Preserved lump sum

Pensionable remuneration € ______ *3/80* ______ € ______

less Spouses’ and Children’s contributions owing € ______

Net lump sum € ______

(c) Spouses and Children’s Pension may be payable.

_____________________ is/is not a member of the Contributory Pension Scheme for Spouses and Children of Established Civil Servants/Prison Officers/Garda Siochana. (Delete as appropriate and if he/she is not a member, delete the remainder of this paragraph)

In the event of ____________________ predeceasing his/her spouse after leaving service, a spouse’s pension may be payable.

Amount as at __________: € __________

In accordance with Section 61 of Guidance Notes, the calculations are based on the assumption that the member spouse died in service on _______________.

(a) Death in service gratuity (payable to legal personal representative):

the greater of annual remuneration or the retirement gratuity which [member’s name] 

would have received had s/he retired on grounds of ill-health € __________

Less any Spouses and Children’s Scheme contributions owing € __________

Net Death Gratuity € __________

(b) Spouses and Children’s Pensions

Calculated on the basis of the Scheme Rules for death in service, i.e. based on the pension that would have been payable to the member if he/she had served to maximum retiring age.

_________________ is/is not a member of the Contributory Pension Scheme for Spouses and Children of Established Civil servants. (Delete as appropriate and if he/she is not a member, delete the remainder of this paragraph)

Spouses pension on his/her death (as at 1998): € __________

Children’s pensions may also be payable.

11. Method by which the foregoing amounts have been calculated: As above.

12. Date or dates on which each element becomes payable: Include the appropriate information from Note on Retirement Ages below.

Pension benefits are increased in accordance with public service pensions increase policy. Since 1986, pension increases have been generally in line with pay. Include Note on Pensions Increases below if co-ordination applies. If the scheme provides for some other system of increases (e.g. based on changes in the Consumer Price Index, insert the relevant information here)

14. Actuarial value of such benefits: delete as appropriate

An actuarial valuation of [Name of Member] will be supplied on request/

The total actuarial value of [Name of member] _____________________ entitlements (including Spouses and Children’s benefit, if any) as of __________19 is estimated at € ________

See Note on Actuarial Valuation below

15. Additional Voluntary Contributions: Not relevant to the Scheme. In the case of members who contribute to AVC schemes, it should be noted that the relevant trustees are the trustees of the AVC scheme in question and that they would have any relevant information. If known, insert a contact name for the provision of information on any AVC scheme here.

16. Details of benefits, if any, provided following a transfer of accrued rights from another scheme: _______ years _______ days. See 8 above.

If you have any queries about the information given on this form, please contact [Insert the

Co-ordination (sometimes referred to as integration) means that the calculation of the occupational pension (excluding the lump sum gratuity which is never subject to co-ordination) takes into account the personal rate of the Contributory Old Age Pension (COAP) or other contributory benefits such as Invalidity Pension or Unemployment Benefit. The calculation of the occupational pension is based on net pensionable remuneration. For the purpose of calculating the member’s benefits, net pensionable remuneration is pensionable remuneration reduced by twice the full rate of the COAP. The calculation of a Spouse’s Pension will depend on the definition of net pensionable remuneration in the scheme rules.

A Supplementary Pension may be payable following retirement if the member fails to qualify for the relevant Social Welfare benefits or qualifies for the benefit at less than the maximum personal rate. The conditions for the payment of the Supplementary pension are that the pensioner:

is not working and

fails to qualify for the full rate of the COAP, Invalidity Pension or Disability Pension (if over 65), or, if under 65, fails to qualify for the full rate of Invalidity Pension or Disability Pension through no fault of their of their own.

Subject to these criteria, a Supplementary Pension is calculated as follows:

Assume the member is receiving a reduced rate of COAP. The combined occupational pension plus the personal rate of COAP being paid is compared to the occupational pension that person would have received if co-ordination had not applied. If the combined pensions are less than the latter then a supplementary pension will be paid to cover the difference. Since the Supplementary Pension will only be paid while the person concerned fulfills the above criteria it may only be payable for a short period. It is worth noting that, where a member has relatively low service, it would be necessary for the COAP to be much less than the maximum rate before a Supplementary Pension would be payable.

Pension benefits are based on actual retiring salary only in cases where the officer has been in the same grade and on the same salary scale for the last three years of paid pensionable service. In the case of [Member’s Name] s/he was promoted on [insert date of promotion]/or [insert reason, if not promotion, for averaging salary] and retiring salary must, therefore, be averaged. The averaged salary was calculated as follows [insert calculations]

Note on Actuarial Valuation to be deleted if no actuarial valuation supplied.

The actuarial value of [member’s name] entitlements is calculated in accordance with a standard set of tables devised for members of Public Service occupational pension schemes. These tables were prepared in accordance with Guidelines issued by the Society of Actuaries of Ireland (i.e. Guidance Note GN11A) which covers actuarial calculations required under the Family Law Act, 1995, and the Family Law (Divorce) Act, 1996. Paragraph 4.1 of Guidance Note GN11A states:

"where the court directs the trustees of a defined benefit scheme to provide specified information, Article 48 stipulates that each element of the accrued retirement benefit of the member spouse and the actuarial value of such benefits are to be calculated at a date specified by the trustees assuming, where the member spouse in an active member, that the member’s reckonable service terminates on that date".

The aforementioned Article - i.e. Article 48 of the Pension Scheme (Family Law) Regulations (S.I. No. 107 of 1997) - requires that the value of the accrued retirement benefit be calculated on a resignation basis.

In accordance with the Family Law legislation and relevant guidelines the actuarial values are calculated on the basis that [member’s name] service terminates on a date specified in accordance with the legislation. The date used is _______________. 

Insert information on the retirement ages (minimum and maximum) applicable to the member under the rules of his/her scheme. Some sample texts for public servants are given below and should, if used, be personalised in each case. It is the responsibility of the Trustees to ensure that the correct information is given in each case.

If [member’s name] continues in service then s/he must retire at age 60 at the latest. Service in excess of 20 years is doubled so that the maximum pension is payable after 30 years actual service. Members may retire at 55 years of age or on immediate full pension of half pay and lump sum of one and one-half times pay at any time between age 50 and 55 provided that they have 30 years actual service in the prison service. The earliest date on which [insert member’s name] may retire with immediate payment of pension is [insert age 50/age 55/date of attaining 30 years actual service as appropriate].

If Garda _____________ continues in service then, unless s/he is promoted to at least the rank of Superintendent, s/he must retire by age 57 at the latest. Service in excess of 20 years is doubled so that the maximum pension is payable after 30 years actual approved service. Gardai may retire on immediate full pension on half pay and lump sum of one and one-half times pay at any time between ages 50 and 57 provided they have 30 years service. The earliest date on which [insert member’s name] may retire with immediate payment of pension is [insert age 50/date of attaining 30 years actual service as appropriate].

If [member’s name] continues in service s/he must retire at the age of 65 at the latest. S/he may retire at 60 years of age.

The maximum retirement age for [member’s name] is age 65. If [member’s name] continues in service beyond that age, then service after age 66 (the age at which Contributory Old Age Pension becomes payable) will not be reckoned for pension.

Teachers

If [member’s name] continues in service then s/he must retire on _____________ (insert the date of the end of the school year in which s/he turns 65 or 66 as appropriate) at the latest; s/he may retire on immediate pension once s/he has reached 60 years of age. Teachers have the option to retire with immediate payment of pension between the ages of 55 and 60 provided they have completed 35 years service. [member’s name] may avail of this option after (insert relevant date). Pension and lump sum will be based on actual service at retirement.

Where co-ordination applies, the original pension and eligibility for a supplementary pension are calculated by reference to the Contributory Old Age Pension payable at the date of retirement, the occupational pension is not affected by subsequent changes in Social Welfare benefits, and pensions increases are applied to the occupational pension only.

1. Before issuing the forms, obtain written confirmation that the information is required in the context of Family Law proceedings.

2. When completing the form, delete all unnecessary information. For example, if the member’s salary is not subject to averaging, delete all references to averaging, if the member’s pension is not subject to co-ordination, omit all references to co-ordination, net pensionable remuneration, supplementary pension and the calculation of pension increases for co-ordinated pensions (6, 7, 9 and Note on Co-ordination refer). If the member did not join the Spouses’ and Children’s Scheme, say so (see 9 of form) and delete all other references to Spouses and Children’s pensions.

3. The information given on this form may be used later in framing Pension Adjustment Orders so it is essential that all the necessary details (correct names of schemes, date of retirement or resignation, etc.) are shown on the form.

4. Complete 3 (Calculation of current pension), deleting A, B, C as appropriate, for cases where the pension is in the course of payment. Complete 9 (calculation of preserved benefits) for former members under 60 years of age whose pension is not yet in course of payment.

5. Show the start and end date of each period of actual pensionable service under the scheme. Show the dates of all breaks in pensionable service (e.g. unpaid leave, sick pay at pension rate) and the dates and reckonable value in years and days of all part-time, job-sharing, temporary and other service which is not scheme service but is reckonable as pensionable service. Where actual service exceeds the maximum amount of service reckonable for pension purposes, actual service, not the maximum reckonable, should be the amount stated in 8 of the form. It is essential that the information be given in this way, because Pension Adjustment Orders take account of the total service as a member of the pension scheme and the total pension secured by that service. Any doubt about the apportionment of the total pension payable between actual service and pensionable service should be resolved before the information is issued.

6. Use the same valuation date for every calculation. The date chosen by the Trustees must be no earlier than 12 months before the date on which they were directed to give the information and calculations, once done, need not be revised until 12 months after that chosen date. However, it would be expected that Trustees would treat requests for revised information sympathetically in the event of a significant change, such as an increase of 5% or more in pay or increased pensionable service (arising, for example, from a decision to transfer service or the payment of contributions in respect of previous service).

7. If the member is on pension, delete all references to preserved pension. Where the lump sum has already been paid, delete all references to lump sum.

8. Only Notes which are relevant to the case and necessary to understand the information should be included in the form. In some instances (e.g. cases where only the Note on the actuarial value of the pensioner’s entitlement is being included) it may be possible to include the Note in the body of the form.

9. Trustees should make absolutely certain that the information given on the form is accurate, and the amount of any pension or preserved pension and lump sum is correct as the latter, together with date of birth, form the basis for actuarial calculations.

Family Law Act, 1995 (Section 12) _______________

Family Law Divorce Act, 1996 (Section 17) _______________ Tick as appropriate

2. Name of Scheme(s): __________________________________________________

__________________________________________________

3. Name of member: __________________________________________________

4. Date of birth: __________________________________________________

(i) retirement benefit: ______________

(ii) Benefit under the Spouses and Children’s Scheme: ___________.

6. Co-ordination/integration

Benefits are co-ordinated...… yes/no (as appropriate) If yes, see Note on Integration below, otherwise delete the following

If ‘Yes’

a. co-ordination applies to all service ____________

b. co-ordination applies to service from ____________

7 Service

Actual Service as a member of the scheme years _____ days _____

less unpaid absences: years _____ days _____

Total actual scheme service: years _____ days _____

Other reckonable service

Transferred, years _____ days _____

Purchased years _____ days _____

Notional (e.g. professional added years)

other (specify) years _____ days _____

Accrued preserved reckonable service: years _____ days _____

A Where co-ordination does not apply

(a) current pensionable remuneration € _____________

(b) accrued reckonable service

(c) current pension [(a) * (b)] €

B Where co-ordination applies

(a) occupational pension awarded on retirement expressed as a percentage of pensionable remuneration [insert figure] %

(b) current equivalent of pensionable remuneration €______________

(c) current pension [(a) * (b)] €______________

9. Accrued Preserved Retirement Benefit on _____________ insert date of valuation. Where payment of pension has already started, delete "preserved"

(a) Pension/Preserved pension

Pensionable remuneration € ______ *1/80* ______ € ______

(or, if applicable, use Net Pensionable Remuneration)

(b) Preserved lump sum

Pensionable remuneration € ______ *3/80* ______ € ______

less Spouses’ and Children’s contributions owing € ______

Net lump sum € ______

(c) Spouses and Children’s Pension may be payable

_____________________ is/is not a member of the Contributory Pension Scheme for Spouses and Children of Established Civil servants. (Delete as appropriate)

In the event of ____________________ predeceasing his/her spouse, a spouse’s pension may be payable.

Amount as at __________: € __________

As above.

M _______________________ retired with effect from ____________. Or

Payment of preserved benefits to M _______________________ will commence with effect from ___________________ delete as appropriate

Pension benefits are increased in accordance with public service pensions increase policy. Since 1986, pension increases have been generally in line with pay. Include Note on Pensions Increases below if co-ordination applies. If the scheme provides for some other system of increases (e.g. based on changes in the Consumer Price Index), insert the relevant information here.

An actuarial valuation of [Name of Member] will be supplied on request/

The total actuarial value of _______________________ entitlements (including Spouses and Children’s benefit) as of __________200 is estimated at € ________

See Note on Actuarial Valuation below

14. Additional Voluntary Contributions: Not relevant to the Scheme. See note E below.

15. Details of benefits, if any, provided following a transfer of accrued rights from another scheme: _______ years _______ days. See 8 above.

If you have any queries about the information given on this form, please contact [Insert the

Co-ordination (sometimes referred to as integration) means that the calculation of the occupational pension (excluding the lump sum gratuity which is never subject to co-ordination) takes into account the personal rate of the Contributory Old Age Pension or other contributory benefits such as Invalidity Pension or Unemployment Benefit. The calculation of the occupational pension is based on net pensionable remuneration. For the purpose of calculating the members benefits, net pensionable remuneration is pensionable remuneration reduced by twice the full rate of the contributory old age pension. The calculation for a Spouses Pension will depend on the definition of net pensionable remuneration in the scheme rules. 

A Supplementary Pension may be payable following retirement if the member fails to qualify for the relevant Social Welfare benefits or qualifies for the benefit at less than the maximum personal rate. The conditions for the payment of the Supplementary Pension are that the Pensioner:

is not working and

fails to qualify for the full rate of the COAP, Invalidity Pension or Disability Pension (if over 65), or, if under 65, fails to qualify for the full rate of Invalidity Pension or Disability Pension through no fault of their of their own.

Subject to these criteria, a Supplementary Pension is calculated as follows:

Assume the member is receiving a reduced rate of COAP. The combined occupational pension plus the personal rate of COAP being paid is compared to the occupational pension that person would have received if co-ordination had not applied. If the combined pensions are less than the latter then a supplementary pension will be paid to cover the difference. Since the Supplementary Pension will only be paid while the person concerned fulfills the above criteria it may only be payable for a short period. It is worth noting that, where a member has relatively low service, it would be necessary for the COAP to be much less than the maximum rate before a Supplementary Pension would be payable.

Note on Actuarial Valuation [to be deleted if no actuarial valuation supplied].

The actuarial value of _____________________ entitlements is calculated in accordance with a standard set of tables devised for members of Public Service occupational pension schemes. These tables were prepared in accordance with Guidelines issued by the Society of Actuaries of Ireland (i.e. Guidance Note GN11A) which covers actuarial calculations required under the Family Law Act, 1995, and the Family Law (Divorce) Act, 1996. Paragraph 4.1 of Guidance Note GN11A states: 

"where the court directs the trustees of a defined benefit scheme to provide specified information, Article 48 stipulates that each element of the accrued retirement benefit of the member spouse and the actuarial value of such benefits are to be calculated at a date specified by the trustees assuming, where the member spouse in an active member, that the member’s reckonable service terminates on that date". 

In accordance with the Family Law legislation and relevant guidelines the actuarial values are calculated on the basis of service to the date of resignation/retirement (delete as appropriate) and the rates applicable at _______________. insert valuation date here 

Note on Pensions Increases

Where co-ordination applies, the original pension and eligibility for a supplementary pension are calculated by reference to the Contributory Old Age Pension payable at the date of retirement, the occupational pension is not affected by subsequent changes in Social Welfare benefits, and pensions increases, as shown in the calculation at 8 of the Information Form, are applied to the occupational pension only. 

The attached model Pensions Adjustment Order (PAO) should be entered onto computer and a draft run off for each case, after taking account of the following notes. When forwarding the model PAO to the parties, stress that it is not a legal document, that it and the accompanying notes are for guidance only, that it is not comprehensive (i.e. that it does not purport to cover every eventuality) and that any decision on whether or not to seek a PAO or on which benefits to split, is a matter for the parties concerned.

1 The sample PAO attached is drafted to cater for an active member (serving public servant) and covers all the benefits which may be split under a valid PAO.

2 If the party involved is a former member (whether a pensioner, or a former member with an entitlement to a preserved pension), there is no question of contingency benefits and all references to such benefits should be deleted before the model PAO is sent to the parties.

3 If the member has retired and received the retirement gratuity, all references to the gratuity should be deleted from the model PAO.

4 If the member is not a member of the Spouse’s and Children’s’ Scheme, all references to that scheme should be deleted.

5 Type in the correct names of the relevant schemes.

1 The attached draft Pension Adjustment Order (PAO) is for guidance only. It is not a legal document but PAOs drafted after this manner, provided they conform to the requirements of the Family Law Legislation, are acceptable to the Trustees and will be implemented by them. It is not comprehensive and is designed to cover payments to spouses only, though it is possible to secure a PAO in favour of a child or children.

2 For a PAO to be valid, the Trustees must be notified in advance that the parties intend to seek it.

3 All items marked in bold type (e.g. County) refer to information which must be entered by the parties or the officers of the Courts.

4 Retirement Benefits means all benefits payable following the retirement of the member, including benefit payable to his/her surviving spouse and/or children following death after retirement. The model PAO shows each element of the retirement benefits separately, as it is possible to use different periods and percentages for each of the elements and it is possible to secure a PAO for one or more of the benefits while ignoring the others.

5 Reckonable Service is the period of the member’s service under the scheme which is taken into account when calculating the benefit payable to the non-member. The start date and the end date (which cannot be later than the date of the decree) must be stated in each instance.

6 Percentage Where retirement benefit is concerned this is the percentage of the benefit accrued during the period of reckonable service mentioned in the PAO which is to be paid to the non-member spouse. In the case of contingent benefits it is the percentage of the benefit which is to be paid to the non-member spouse.

7 Contingent Benefits refers to the benefits accruing following the member’s death in service and includes death gratuity and survivors’ pensions.

8 In the case of retirement benefits, for the PAO to be valid, it must include both Percentage and Reckonable Service. Pensions Adjustment Orders based on contingent benefits should be based on the Percentage only.

9 The name of the schemes must be entered in the PAO for it to be valid. The terms Retirement and Contingent Benefit cover benefits under both the Main Scheme and the Spouses and Children’s’ Scheme and where it is the intention that a PAO should cover benefits under both schemes, both schemes should be named.

10 The reference to Section 12(26) of the Family Law 1995 is optional and may be inserted in separation cases only. Where the PAO is obtained under the 1996 Divorce Act, it must be deleted.

11 It is the responsibility of the parties seeking the PAOs, not the Trustees, to ensure that any PAO obtained is valid and that it reflects, in so far as the legislation allows, any agreement reached by the parties on how the superannuation benefits should be split.

12 "Nil" PAOs are not valid and will not be accepted by the Trustees.

MODEL PENSION ADJUSTMENT ORDER

_________________________________________

[RECORD NUMBER]

[CIRCUIT]                                                     [COUNTY]

IN THE MATTER OF THE FAMILY LAW ACT

BETWEEN

[Name of Applicant]

Applicant

and

[Name of Respondent]

Respondent

ORDER

Upon notice having been given to the trustees of the schemes named below in accordance with Section of the Family Law Act of the application of [Name of applicant Spouse] for pension adjustment orders under Section of the Family Law Act and upon hearing …

[By consent] the Court doth Order under Section of the Family Law Act that the trustees of [Name of Main Scheme] shall pay to [Non-Member Spouse] (and, in the case of his/her death, to his/her personal representative) a benefit consisting of a part of the retirement pension accrued under the scheme in respect of [Member Spouse] and that, for the purpose of determining the benefit,

(a) the period of reckonable service of [Member Spouse] prior to the granting of the Order for the decree in these proceedings to be taken into account shall be all such reckonable service between [start date] and [end date], and

(b) the percentage of the retirement benefit accrued during that period to be paid in accordance with this Order shall be [ %].

[By consent] the Court doth Order under Section of the Family Law Act that the trustees of [Name of Main Scheme] shall pay to [Non-Member Spouse] (and, in the case of his/her death, to his/her personal representative) a benefit consisting of a part of the retirement gratuity accrued under the scheme in respect of [Member Spouse] and that, for the purpose of determining the benefit,

(a) the period of reckonable service of [Member Spouse] prior to the granting of the Order for the decree in these proceedings to be taken into account shall be all such reckonable service between [start date] and [end date], and

(b) the percentage of the retirement benefit accrued during that period to be paid in accordance with this Order shall be [ %].

And [by consent] the Court doth further Order under Section of the Family Law Act that the trustees of [Name of Spouse’s and Children’s Scheme] shall pay to [Non-Member Spouse] (and, in the case of his/her death, to his/her personal representative) a benefit consisting of a part of the retirement benefit accrued under the scheme in respect of [Member Spouse] and that, for the purpose of determining the benefit,

(a) the period of reckonable service of [Member Spouse] prior to the granting of the Order for the decree in these proceedings to be taken into account shall be all such reckonable service between [start date] and [end date], and

(b) the percentage of the retirement benefit accrued during that period to be paid in accordance with this Order shall be %.

And [by consent] the Court doth further Order under Section of the Family Law Act that the trustees of [Name of Main Scheme] shall pay on the death of [Member Spouse] to [Non-Member Spouse] % of any contingent benefit (death gratuity) under the scheme.

And [by consent] the Court doth further Order under Section of the Family Law Act that the trustees of [Name of Spouses & Children’s Scheme] shall pay on the death of [Member Spouse] to [Non-Member Spouse] % of any contingent benefit under the scheme.

[And [by consent] the Court doth further Order that Section 13 (1) of the Family Law Act 1995 shall apply to this Order.]

Until further notice from [Non-Member Spouse] to the trustees concerned the address to which payments to be made under this Order are to be remitted is [address of Non-Member Spouse].

By the Court

County Registrar