Why do I need a PODE?
Why do I need a Pensions on Divorce Expert (PODE)?
When two parties divorce, their pension benefits have to be considered in the financial split. In virtually every case, the parties will have more than one pension in addition to their state pension and the face value may not match the “true value”. The PODE’s role is to assess the values and suggest the proportion which should be passed from one party to the other to ensure they both have an equitable share.
Yes, a PODE Report costs money, but the pension benefits under consideration may be extremely valuable.
How much does it cost?
My fixed fee for all PODE reports is £1,900 + VAT (£2,280), which equates to £1,140 for each party. That is invoiced in stages, a fee note for half of each staged payment will be sent to you.
- 25% of each individual’s share of the fee is due at outset: £285 each (£237.50 + VAT each) and
- a further 25%, which is £285 each (£237.50 + VAT each) once all information has been obtained.
At both stages, I will not commence work until payment has been received.
- The final 50%, which amounts to £570 each (£475+VAT each) will be invoiced on completion.
Once payment is received, I will issue the report.
My fees are reviewed each year on 1st April and will apply to all Letters of Instruction received after that date. Fees will continue to be invoiced in stages as described above.
It is an additional cost, but the pension under consideration will usually be more valuable.
How Long Does it Take?
I would estimate that the entire process takes between six months and a year.
There are three main stages:
- Instruction
- Data Gathering
- Computations & Drafting
Instruction takes as long as its takes for the divorcing parties, their mediator, and their legal advisers to agree who to use, what to instruct them to calculate and to submit the Letter of Instruction to the PODE. It can be done in days, but it can take months.
Data Gathering is the longest part of the process. Schemes are required to provide information within three months of request, but some seem to treat this as a target rather than a deadline. Additionally, in certain circumstances they can extend this period to six months. I will keep you updated as I will undoubtedly need your help with this. I would suggest you expect it to take about three to four months.
Computations & Drafting I aim to complete the calculations and prepare the report within six weeks of payment of the interim fee instalment. This is partially down to my workload, and of course holidays and days off. The complexity of the case i.e., numbers of pensions, required calculations, and variations, will also impact, because the more computations, the longer it takes complete and check them. I will update you when I have completed those and moving on to prepare the report. Again writing and checking the report is more time consuming when numerous variations of the basic options have been requested.
Throughout the process, I try to work in chunks on each and every case, so that they all progress, but sometimes court deadlines will need to be met, delaying other work.
Appoint your PODE early so they can work on this whilst you discuss the other financial aspects.
What information and documentation do you need?
I will supply you with a series of documents to complete:
- Letter of Instruction – sets out your requirements.
- Client Information Form – provides your personal information.
- Letter of Authority – gives me authority to obtain information from your pensions. Note: I will need one for each pension.
I will also ask you for:
- Copies of your pension information – the more I can ascertain from that, the less I have to ask the schemes and the quicker the data gathering stage will be.
- A State Pension Forecast from https://www.gov.uk/check-state-pension
- Payment of my Initial Fee (£285 each)
I will review the pension documents you send me, together with my scheme library, which I have built up over the last twenty years. I will also locate and review the scheme website. I will then submit the Letters of Authority and request the missing details from the pension providers. I will email to confirm I have done that. I will then diary your case for two weeks. If I receive a response before then I will review that and revert to the provider to request any other details required. Sometimes they simply don't answer all my questions and on occasion what they say contradicts something else, or requires clarification. At the two week point I will send email reminders and provide you with a progress report. I may ask you to contact the provider to chase things up. I will continue this diary review, request and chase process, until I have all the information I need. At that point, I will ask you to pay the interim instalment of £285 each. I will then undertake the computations and prepare the report.
I will guide you through the process and keep you updated
Why do I need a Financial Adviser?
A Financial Adviser will help you assess your entire financial situation and consider how best you can achieve your aims and objectives. You can both appoint separate ones, who will support you individually.
Some Financial Advisers work as a Financial Neutral and will work with both of you assisting with the financial negotiations in conjunction with your mediator or solicitors.
A Financial Adviser provides a different service to a PODE
Why do I need a PODE and a Financial Adviser?
A PODE is not a Financial Adviser. They may be qualified as such, but their duty is to the court. A PODE is required to be impartial and provide information to assist your advisers, mediator, solicitors, and the court. They cannot give you advice or assist with implementation of the Pension Sharing Order.
I am not authorised as a Financial Adviser, so you will need a separate one
Why does my pension provider say you are not authorised or regulated?
The short answer is I don’t need to be!
The longer answer is:
The Financial Conduct Authority (FCA) authorises Financial Advisers. I am not a Financial Adviser, so I am not on the register of regulated advisers. Virtually all the enquiries the providers receive from third parties will be financial advisers.
I am a Pension on Divorce Expert (PODE), and my duty is to the court, which requires me to be impartial. My role is to examine all of your pensions and propose a fair and equitable apportionment which can then be actioned by a Pension Sharing Order. The FCA does not regulate PODEs.
It's a pretty niche role and frequently the staff at the large insurance companies and consultancy firms which administer schemes are simply not aware it exists, let alone what we do! The presumption is therefore that I must be an unauthorised firm trying to obtain information for nefarious reasons. Hence the reference to my not being regulated.
I am a PODE not a Financial Adviser
How do I trace missing pensions?
The starting point is working out which employment they relate to and so what company name may have been used. Running through your work history or CV is often helpful to jog your memory.
The main source of assistance is the Money Helper Website which is government funded.
You may have been enrolled in pensions you have forgotten about!
I am struggling to cope, who can help me?
There are numerous resources available to assist with various aspects of the divorce process and the financial difficulties frequently associated with it.
You are not alone, click on the button below to find lots of help
What about Legal Aid?
I am able to provide documentary evidence to support a Legal Aid Claim. I suggest you look at the UK Government's Legal Aid Overview webpage, or HM Government supported Money Helper website.
Lack of money should not stop you getting a fair financial settlement in your divorce
What is a Pension Sharing Order?
A Pension Sharing Order is a court order, requiring a pension provider for one party to pass funds to a pension for the benefit of the other party. You will not receive a lump sum you can instantly spend.
A PODE Report can help you obtain a Pension Sharing Order from the court
How long does it take to Implement a Pension Sharing Order?
Each pension scheme has four months from the point at which they have all their requirements to implement the Pension Sharing Order. They will specify the documents and fees necessary, but the Implementation Period does not begin until they have them all.
I suggest you obtain the assistance of a Financial Adviser, who can help you with the implementation process.
A PODE Report can help you obtain a Pension Sharing Order from the court
You need a Financial Adviser to implement it
How do you assess if my health will impact on my longevity?
I am not medically qualified and so I will be guided by you. If your initial comments suggest you may have some life shortening issues, I may ask you to complete a Retirement Health Form. This is used by insurance companies to underwrite annuities. If they feel an individual’s health is such that their longevity may be curtailed, they may offer a higher income in exchange for the capital lump sum. I can use the answers on the form to gauge that and if necessary request a quotation to access underwriting expertise, which does entail a certain amount of medical knowledge.
Your health may impact the value of your pension
May I have a sample report?
Yes of course you can.
What should my state pension forecast look like?
Hopefully the attached sample will help you understand the expected format.
I have pensions in another country e.g. Australia, Canada, Holland or United States, what can I do?
I can prepare a report allowing for the valuations of those overseas or international pensions. I am in the very fortunate position of having worked with numerous offshore advisers over many years and so having contacts in virtually every country who can help me understand the basic structure and taxation situation. That combined with my technical knowledge enables me to make the appropriate adjustments and assumptions in relation to those benefits.
It is not possible to apply a UK Based Pension Sharing Order to these offshore plans. The UK courts do not have the jurisdiction and the divorce legislation differs. The Pension Sharing Order can be calculated to allow for these benefits. I have prepared various reports on this basis.