Pension compensation sharing orders MCA 1973 s. 21B
Section 21B MCA 1973 defines a pension compensation sharing order as transferring a percentage of one party's shareable PPF compensation to the other.
21B For the purposes of this Act, a pension compensation sharing order is an order which— provides that one party's shareable rights to PPF compensation that derive from rights under a specified pension scheme are to be subject to pension compensation sharing for the benefit of the other party, and specifies the percentage value to be transferred. In subsection (1)— the reference to shareable rights to PPF compensation is to rights in relation to which pension compensation sharing is available under Chapter 1 of Part 3 of the Pensions Act 2008 or under corresponding Northern Ireland legislation; “ party ” means a party to a marriage; “ specified ” means specified in the order.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section defines what a pension compensation sharing order is for the purposes of the Matrimonial Causes Act 1973. It is an order that transfers a percentage of one spouse's shareable rights to Pension Protection Fund (PPF) compensation to the other spouse. The order must specify the pension scheme from which the rights derive and the percentage value to be transferred.
The term 'shareable rights' refers to rights that can be shared under the Pensions Act 2008 or corresponding Northern Ireland legislation. 'Party' means a party to a marriage. 'Specified' means specified in the order itself.
When it applies
- A divorcing couple where one spouse has PPF compensation rights from a former employer's pension scheme, and the court orders a percentage of those rights to be shared with the other spouse.
- A court makes an order under this section specifying the exact percentage of the PPF compensation to be transferred, without needing to determine the method of transfer.
- An order that identifies the particular pension scheme from which the PPF compensation rights derive, ensuring the order is enforceable.
- A spouse seeks a pension compensation sharing order as part of financial remedy proceedings after divorce.
What this section does not say
- This section does not cover pension sharing orders for ordinary occupational or personal pensions that are not PPF compensation (those are covered by sections 21A and 24B).
- It does not address the court's discretion in deciding what percentage to order (that is covered by section 25).
- It does not deal with the duty to stay or the timing of the order (those are covered by sections 24F and 24G).
- It does not define the meaning of 'PPF compensation' or 'shareable rights' in detail (that is covered by section 21C).
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This page reproduces the text of MCA 1973 s. 21B in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.