Pension Offsetting

Question 1

What is pension offsetting?

Answer 1

An agreement where the member preserves all of some of their pension pot in exchange for other matrimonial assets such as the home.

Question 2

What are the benefits?

Answer 2

1. Member gets to preserve pension benefits

2. Ex Spouse/CP keeps assets such as family home

Question 3

What are the drawbacks

Answer 3

1. Ex Spouse/CP may get house etc but will not have a retirement income
2. The member will be taxed on 75% of pension benefits where as the Ex Spouse/CP may have tax free/efficient assets