Teachers’ pension bottleneck stalls divorce settlements: stay informed says law firm
Delays in pension valuations for members of the Teachers’ Pension Scheme are stalling divorce settlements, leaving countless individuals in financial and emotional limbo, says Adam Maguire, partner in the Family Law team at Clarke Willmott.
As teachers and retired teachers navigate the complex landscape of divorce, many are finding that delays in securing Cash Equivalent Transfer Values (CETVs) are prolonging legal proceedings, affecting living arrangements, and causing financial strain.
Currently, the Teachers’ Pension Scheme (TPS) is grappling with a backlog of requests for CETVs, a critical piece of information required to reach fair financial settlements during divorce.
“This backlog places teachers and their families in challenging situations, particularly as financial settlements are fundamentally stalled without accurate pension valuations,” said Adam.
“Divorce already entails significant emotional and financial stress, and for those impacted by these pension delays, their lives are now indefinitely on hold.”
The delays stem from legislative changes in public sector pensions, including recalibration of the discount rate for CETVs and a recent court ruling requiring options for scheme members to choose between old or new terms from 2015 to 2022.
The bureaucratic roadblock has left divorcing teachers waiting up to 18 months for valuations that, by law, should take no more than three months.
“The consequences are severe,” added Adam. “The prolonged wait not only strains personal finances but also adds to the legal costs of divorce proceedings, making it a taxing process for those without immediate financial resources.
“The delay disproportionately impacts those who may lack alternative financial means, adding unnecessary hardship to what is already a difficult time,” added Adam who has been recommended in leading independent industry directory, the Legal 500, since 2017.
“We are urging affected clients to stay informed and remain in communication with their legal representatives to navigate this unprecedented challenge.”
As the situation develops, Clarke Willmott is encouraging people affected by the TPS delays, to seek professional guidance on managing their immediate financial needs while waiting for resolution.
Members of TPS include teachers employed by councils, academies, sixth-form colleges, further education institutions, and former polytechnics.
The scheme is currently managed by Capita; however, Tata Consultancy Services won the contract last year and will officially take over in October 2025.
Speak to an expert
If you would like to speak to a member of our specialist family team, please call us on 0800 652 8025 or send an enquiry.
