Why do I need an updated Cash Equivalent Value (CEV)?

Solicitors and clients will sometimes instruct Collins Pension Actuaries and provide Cash Equivalent Values (CEVs) for pensions which are coming up to or are more than one year old.

In these instances it will be necessary to request the parties provide an updated CEV.

The reason for this is straightforward and relates to when a Pension Sharing Order is implemented.

The effective date of a Pension Sharing Order (PSO) is 28 days after the date of the PSO or the date of the Decree Absolute, whichever is the later.

This date is known as the Transfer Day. The pension rights that are the subject of a PSO are determined the day immediately before the Transfer Day. The pension rights are valued at a date decided by the scheme known as the Valuation Day.

As CEVs can, and do fluctuate over time, it is therefore necessary to have as up to date a CEV as possible in order for the Pension Sharing Report to illustrate the likely percentages Pension Shares that will be required to achieve equality of income or value as required.