IORP II and pension adjustment orders

As many schemes cannot sustain the costs associated with the level of governance now required under IORP II, they will be forced to wind up and transition to an alternative arrangement this year with the most likely destination being a Master Trust. Where members of those schemes have gone through divorce or judicial separation proceedings, then pension adjustment orders may be attached to those schemes. They may be made on the Retirement Benefits and/or Contingent (Death in Service) Benefits for the member under the scheme. Those orders are legally binding and will direct the trustees on how the benefits under the scheme should be designated to the former spouse of a member and in some cases the dependents of the member.

There are a number of different scenarios which may need to be considered depending on what the pension adjustment order itself states and which benefits it applies to. In this week's TechTalk we look at three different scenarios.

Find out more here.