Watson Wyatt, a pensions specialist providing information to pension fund trustees, has just published its latest Briefing Ireland newsletter. The document's timely contents review pension changes in relation to the Family Law Act 1995 and the Family Law (Divorce) Act 1996. These issues are particularly relevant to couples who are separating or divorcing.
According to the newsletter: "Many employed and self-employed persons have accrued pensions benefits which may be as valuable as the family home and other life savings. Before the 1995 and 1996 Acts were passed, the rights of the spouse of a pension scheme member depended on the rules of the particular scheme. This changed as a result of the Acts, which gave a spouse the right to apply to Court for a share of pension and death benefits in cases of judicial separation and divorce."
Unfortunately, it appears these court orders often create more problems than they solve. "The practical experience to date has been that Family Law Courts have not yet fully come to terms with pension provisions in the Acts. A large number of invalid orders have been issued which Trustees cannot implement." As the format of these orders is standardised, fewer difficulties are expected for pension fund administrators and scheme participants.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)