Teachers’ pension valuation delays likely to persist
Delays in pension valuations for members of the Teachers’ Pension Scheme, are likely to persist for some time, according to family lawyer Adam Maguire.
The backlog in securing Cash Equivalent Transfer Values (CETVs) has been stalling divorce settlements for teachers and retired teachers, leaving countless individuals in financial and emotional limbo.
Although the Department for Education (DfE) has assured people that the backlog will be mostly cleared by February, it seems that no additional support is being provided to move the process forward.
Adam, a partner with national law firm Clarke Willmott LLP, said: “It is likely that this backlog will persist for some time. The DfE said the delays were not a result of having too few staff, so they will presumably be working to clear the backlog without additional support, while more CETV requests are submitted in the meantime.
“And it is not just teachers’ pensions that are affected, NHS workers, firefighters, police officers, local government workers and people in the Armed Forces are also facing delays.
“These delays are prolonging legal proceedings, affecting living arrangements and causing financial strain. Without accurate pension valuations, financial settlements cannot be finalised. CETVs are a critical piece of information required to reach a fair agreement.”
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.
“Divorce already entails significant emotional and financial stress, and for those impacted by these pension delays, their lives are now indefinitely on hold,” said Adam.
“The consequences are severe and the delay disproportionately impacts those who may lack alternative financial means.
“The good news is that we have seen a number of clients who have begun to receive theirs and it looks as if the backlog is continuing to clear, albeit, slowly.
“In the meantime, if there are issues, we would recommend those affected take legal advice on their options. We are urging affected clients to stay informed and remain in communication with their legal representatives to navigate this unprecedented challenge.”
The Teachers’ Pension Scheme is currently managed by Capita; however, Tata Consultancy Services won the contract last year and will officially take over in October 2025.
Adam Maguire has been recommended in leading independent industry directory, the Legal 500, since 2017.
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