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GLOSSARY

Earmarking definition

Published by a LexisNexis Pensions expert

What does Earmarking mean?

Earmarking provides a spouse with a share of a pension scheme member's pension rights on divorce. The spouse's share is paid when the member draws their benefits. Now called ‘attachment’; alternative remedies include sharing and reallocation (‘offsetting’).

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An introduction to the UK pension system for the private client practitioner—how pension schemes are governed and the key regulatory bodies

An introduction to the UK pension system for the private client practitioner—how pension schemes are governed and the key regulatory bodies In the UK most pension schemes in the private sector, ie both occupational and personal pension schemes, are established under trust and are therefore subject to trust law. The trustees appointed under the governing trust deed are required to act in accordance with the trust deed and rules and overriding legislation applicable to the relevant pension scheme. Probably the most important tenet of trust law is that the trustees must act in the best interests of the members of the pension scheme, subject to the governing provisions of the scheme in question and general applicable law. In the public sector, pension schemes are established mainly by Parliamentary statute and are subject to their scheme rules and overriding legislation, but some are established under trust and thus subject to trust law and are required to act in accordance with the trust deed and rules as well as any...

Financial proceedings—orders that can be made by the court

Financial proceedings—orders that can be made by the court This Practice Note explains the differences between financial orders and financial remedies as provided for in the Family Procedure Rules 2010 (FPR 2010). It sets out the financial orders that may be made by the court within proceedings for divorce, nullity and judicial separation, and the civil partnership equivalents, including in relation to financial provision, property and pensions. For practical guidance on the courts’ approach to an application for a financial order, see Practice Note: Factors considered by the court on financial provision. Prior to issuing a financial application regard should be had to the requirement for attendance at a mediation information and assessment meeting (MIAM) and the pre-application protocol annexed to FPR 2010, PD 9A, see Practice Notes: Non-court dispute resolution—mediation information and assessment meetings (MIAMs) and Financial proceedings—pre-application protocols—Pre-application protocol (FPR 2010, PD 9A, Annex). What are financial remedies and financial orders? FPR 2010 made changes to the terminology used in relation to proceedings for financial...

Discover our 21 Practice Notes on Earmarking

Phantom share option agreement

Phantom share option agreement This AGREEMENT is made on [insert date of execution of the phantom share option agreement] Parties 1 [insert name of company whose shares are relevant to the phantom option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company); and 2 [insert name of option holder] of [insert address of option holder] (the Option Holder) Background (A) The Company has agreed to grant to the Option Holder as at the date of this Agreement a Phantom Option on the terms set out in this Agreement. (B) The Phantom Option provides an entitlement to cash and not shares. 1 Definitions In this Agreement, except where the context otherwise requires, the words and expressions set out below will bear the following meanings, namely: Cash Payment • means the cash sum payable on the exercise of the Phantom Option, which shall be calculated in accordance with clause 6.2; Control • has the meaning given...

Unapproved share option agreement—standalone deed for employee

Unapproved share option agreement—standalone deed for employee This AGREEMENT is made on [insert date of execution of the share option agreement] Parties 1 [insert name of company whose shares are being granted under option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company);[and] 2 [insert name of option holder] of [insert address of option holder] (the Option Holder) [and] 3 [[insert name of grantor (if different from company)] of [insert address of grantor] (the Grantor)] Background (A) [The Company has agreed to grant to the Option Holder as at the date of this Agreement an Option to acquire Shares on the terms set out in this Agreement. OR The Company and the Grantor intend that, as at the date of this Agreement, the Option Holder be granted an Option to acquire Shares on the terms set out in this Agreement.] (B) [The Company will satisfy the exercise of the Option by transferring or procuring the...

Dive into our 7 Precedents related to Earmarking

Can an EMI option be granted over existing shares?

Can an EMI option be granted over existing shares? EMI options are most commonly granted over newly issued shares, but there is nothing to prevent an EMI option from being granted over existing shares instead, provided that the shares meet EMI statutory requirements (see Practice Note: EMI—requirements for options—Shares over which an EMI option may be granted). As the EMI legislation requires that the option must take the form of a written agreement between the person granting the option and the employee, the relevant option agreement in these circumstances can either be: • between the EMI company and the employee—with the company acting as grantor and entering into separate arrangements with the relevant shareholder in order to provide shares to satisfy the option when it is exercised, or • between the individual shareholder and the employee—with the individual shareholder acting as grantor (often with the EMI company also joining as a party to the agreement). In this case, any governing EMI plan rules should...

Where a pension sharing order was made 15 years ago, and hasn’t yet been implemented, is there a time limit as an extension for implementation?

Where a pension sharing order was made 15 years ago, and hasn’t yet been implemented, is there a time limit as an extension for implementation? Since 2000 (2005 for civil partnerships) the courts have had the power within financial remedy proceedings to make a pension sharing order. Such an order in effect provides that a pot of money, usually expressed as a percentage, is scooped out of one party's pension pot, and deposited into another pot for the benefit of the other. This has the significant advantage of creating in effect a separate pension, which the receiving spouse is interested in absolutely; unlike a pension attachment or earmarking order, the pension sharing pot is a separate and independent asset. See Practice Note: Pension sharing orders. There are a number of formalities that need to be complied with when the court makes a pension sharing order. The mechanics of the pension sharing order are contained within an annexe to the order itself (a pension sharing annexe in Form...

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