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GLOSSARY

State pension offset definition

Published by a LexisNexis Pensions expert

What does State pension offset mean?

Reduction in a member's pensionable earnings or his pension to take into account the amount of state pension that he receives. Also known as offset or the LEL offset.

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General principles—pensions in family proceedings

This Practice Note sets out an overview of the options available in relation to pensions on divorce, nullity, (judicial) separation or dissolution of a civil partnership, including offsetting, pension sharing and pension attachment orders, and orders that may be made by the courts. It also considers the court’s approach to pensions and the impact of pensions reform.In proceedings for divorce, nullity, (judicial) separation or dissolution of a civil partnership, the court can make various orders dealing with the parties’ respective pension entitlements.Sections 25(2)(h) and 25B(1)(b) of the Matrimonial Causes Act 1973 (MCA 1973) require the court to have regard to the benefits under a pension arrangement that, by reason of dissolution or annulment of the marriage, a party to the marriage will lose the chance of acquiring. MCA 1973, ss 25(2)(a) and 25B(1)(a) focus on the benefits that a party to a marriage has, or is likely to have. There are equivalent provisions in the Civil Partnership Act 2004 (CPA 2004).Pension rights will often form a substantial asset upon marriage...

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