Injuries: Compensation
The question
To ask the Secretary of State for Work and Pensions, whether his Department will make an assessment of the potential merits of making injury-related pension enhancement and compensation elements protected within divorce settlements.
Answered by Torsten Bell
People may be able to access a workplace or private pension earlier than the scheme’s normal minimum pension age due to ill health, subject to the rules of the individual scheme. These rules vary, and it is for schemes to determine the conditions under which benefits can be paid before the normal pension age and/or on enhanced terms.
Where an ill health pension is paid from an arrangement that meets the legal definition of an occupational pension scheme, it is generally a shareable asset in the event of a divorce. This applies even where the pension has been brought into payment early for ill health reasons.
There is a specific exception in legislation for benefits that arise solely due to disablement, or death resulting from an accident suffered by a person that occurs during their pensionable service. These rights are not shareable on divorce.
The division of assets in divorce proceedings is a matter for family courts, which make decisions based on the law of the country in which the divorce takes place. In England and Wales, this falls under the Matrimonial Causes Act 1973, for which responsibility rests with the Ministry of Justice.
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