I have worked closely with the administrators of Teacher’s Pensions (TP) and can confirm that it is certainly one of the better Final Salary Schemes in existence. Its value compared to today’s money-purchase schemes is huge – as some people have said it’s 30 to 40 times greater (depending on the accrual rate and other benefits on offer) and the gap is growing as investment returns on pension funds continue to flat-line. Note that it isn’t just the pension itself that needs to be taken into account but the death in service/children’s benefits that may be on offer as well. The TP will also have guaranteed increases in payment which again raises its value. All of these benefits are things you pay through the nose for to secure in a money-purchase scheme. The best thing to do would be to ask the TP administrators for a transfer value – I guarantee that if your wife has been a contributor for a long time the sum will be pretty eye-watering.
That’s the financial aspect. My advice would be to explore this and then decide whether or not your divorce is as 50-50 as you are led to believe (probably not) but to try and keep things as amicable as possible.
That’s the financial aspect. My advice would be to explore this and then decide whether or not your divorce is as 50-50 as you are led to believe (probably not) but to try and keep things as amicable as possible.