New EU regulations have prompted companies to move their pension schemes to a master trust which manages multiple pension schemes and are an attractive option for companies as the increased risk and compliance costs can be spread across all of the participating employers using the trust.
“Why does this affect me?”, I hear you ask. The unintended consequence of this is that Court Orders in Divorce and Separation cases, requiring death in service payments to be made to the surviving ex-spouse or dependent family members, can no longer be enforced. This is because the Order relates to the original pension scheme and not the new master trust.
The Law Society assures us that they are working with the Government and the Pensions Authority to ensure no person is unduly affected by this.
While we are of the firm view that a Court Order of any kind cannot be disregarded, we would urge any of our clients who have received a letter from their pension company or who are in any way concerned, to contact us.
By Aislinn Collins Solicitor.
This article is for general information purposes/general overview only and does not constitute legal or other professional advice. We recommend seeking legal advice to interpret and advise on any aspect of the law.
March 2023 Wolfe & Co. LLP Solicitors