Defined Contribution

A defined contribution pension arrangement could be a contract based arrangement such as a personal pension or stakeholder pension, or a trust based occupational pension scheme. The ultimate value of the benefits payable will be based upon the contributions paid, the investment growth achieved and the rate at which the fund value built up is converted in to a pension payment.

This type of arrangement tends to have a clearly identifiable value which can be used for divorce purposes. Additional complexity would only arise where certain types of investment (e.g. with-profits funds or guaranteed return funds) or where guaranteed annuity rates exist which could call in to question the CETV value provided.

Where this is the case we would recommend discussing this with one of our pensions on divorce experts to see how you might be affected and if a report would be of value.