The Gazette 1996

GAZETTE

JULY 1996

the Court may, in relation to a

retirement benefit under a Pension

Scheme of which one of the spouses

concerned is a member, on application

being made at the time of the making

of the Decree or at any time thereafter

during the lifetime of the member

spouse, by either of the spouses or by

a person on behalf of a dependant

member of the family, make an order

providing for the payment of a benefit

consisting of the whole, or a part, of

that part of the retirement benefit that

is payable under the scheme and has

accrued at the time of the making of

the Decree.

The Court may order the payment to

be made to the other spouse or to his

or her personal representative, or to a

person for the benefit of a dependant

member of the family.

Section 12 - Sub-section 3

Additionally, where a Decree of

Judicial Separation has been granted

the Court may, in relation to a

contingent benefit under a pension

scheme of which one of the

spouses concerned is a member, on

application being made not more than

one year after the making of the

Decree by either of the spouses or by

a person on behalf of a dependant

member of the family concerned,

make an order providing for the

payment, upon the death of the

member spouse, of either the whole or

a part of that part of any contingent

benefit that is payable under the

pension scheme.

The Court may make the order in

favour of the other spouse or in favour

of a person for the benefit of a

dependant member of the family.

These Orders are called Pension

Adjustment Orders.

It might be of assistance if I

endeavour to explain what, in practise,

the two types of Pension Adjustment

Order are.

Under sub-section 2 the Pension

Adjustment Order relates to a

retirement benefit. Under sub-sectión

3 it relates to a contingent benefit.

Sub-section 2

In so far as it relates to a retirement

benefit, the Pension Adjustment Order

relates only to the part of the

retirement benefit which has accrued

at the time of the making of the

Decree of Judicial Separation. Thus

any part of the retirement benefit

which accrues to a spouse after the

making of the Decree cannot be the

subject matter of a Pension

Adjustment Order.

In making the Pension Adjustment

Order under sub-section 2 the Court

must specify the period of reckonable

service of the member spouse prior to

the granting of the Decree to be

taken into account, and the percentage

of the retirement benefit accrued

during that period to be paid to

the Applicant.

Thus the Court could, for example, in

relation to a member spouse who has

completed 40 years of scheme service,

order that, say, 50% of the benefit

accrued during 20 of the 40 years

be designated as payable to the

spouse. This could apply in relation

to a couple who were married for

only 20 of the 40 years of

reckonable service.

Reckonable service means service in

relevant employment during

membership of any scheme.

Relevant employment means any

employment or any period of self

employment to which a scheme

applies.

Retirement benefit means all

benefits other than contingent benefits

payable under the scheme.

Where the Court makes an Order in

relation to a retirement benefit,

payment of the part of the retirement

benefit designated for the applicant

would of course commence

immediately if the designated

retirement benefit had already

commenced being paid to the member !

spouse, in other words in a situation

where the member spouse had

already retired.

Where payment of the designated

benefit to the member spouse has not

commenced, the applicant spouse has

two options. He or she may either

simply leave the part of the retirement

benefit designated for him or her

within the pension scheme, and the

payment of the part of the member's

pension which is designated to the

dependant spouse will then be paid to

him or her when the member's

pension falls due. One could say, in

this instance, that a portion of the

pension has been ear-marked for the

dependant spouse.

Alternatively the dependant spouse is

entitled to have an amount of

money from the scheme concerned

(called a "Transfer Amount") equal to

the value of the designated benefit

applied in accordance with

sub-section 5.

Sub-section 5 provides that where the

Court has made an order under sub-

section 2 and payment of the

designated benefit concerned has not

commenced the trustees shall, when

application is made to them by the

dependant spouse, apply, in

accordance with relevant guidelines,

the Transfer Amount either.

(i) if the trustees and the spouse so

agree, in providing a benefit for

the dependant spouse under the

same scheme that is of the same

actuarial value as the transfer

amount concerned, or,

(ii) at the determination of the

dependant spouse, to a different

occupational pension scheme, for

example a scheme of which the

dependant spouse is already a

member, or, in making a payment

into what is called "an approved

arrangement" which means an

arrangement whereby the trustees

effect policies or contracts of

insurance that are approved of by

the Revenue Commissioners.

Where a Transfer Amount is

applied under sub-section 5 one

could say that this is a form of

"pension splitting" where the

benefit designated in favour of the

dependant spouse has been split

away from the retirement benefit

of the member of the pension

scheme.

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