Hundreds of current and retired teachers in the midst of divorce proceedings find their lives in limbo as they await long-delayed valuations of their pension pots from the Teachers’ Pension Scheme. The hold-up in providing these figures, known as Cash Equivalent Transfer Values (CETVs), is preventing many from finalizing financial settlements and moving forward.
Sources close to affected teachers report the delays are causing immense distress and financial strain. “I am in despair as my debts mount,” shared one retired educator who has been waiting nearly two years for their CETV. Unable to complete the divorce without this crucial figure, they’ve been forced into rented housing and are struggling to stay afloat.
Pension Valuation Backlog Leaves Lives on Hold
The logjam stems from changes to how public sector pension schemes calculate contribution rates and a court ruling on age discrimination. Resolving these issues involves giving members a choice between old and new scheme benefits, complicating the valuation process.
It really is a mess. People’s lives are being put on hold, with no fixed timetable for getting it sorted out.
– Former Pensions Minister Steve Webb
Thousands Caught in CETV Delays
As the second largest workplace pension scheme in the country with over 2.2 million members, the scale of the problem is significant. While exact numbers are unclear, a freedom of information request suggests over 2,400 scheme members were awaiting CETVs as of late August 2024.
For those navigating divorce, the absence of this vital figure obstructs reaching any financial resolution. Assets like the family home cannot be divided as the pension’s worth remains an unknown variable in the equation.
Educators Shoulder Costs of Frozen Finances
With divorce proceedings stalled, educators are bearing extra legal and living costs. Court dates have to be adjourned, and those who cannot afford to physically separate must continue cohabitating, fueling further conflict. The scheme administrator, Capita, charges hundreds of pounds for the CETV, yet many wait in vain for the promised 3-month turnaround.
It’s holding up the whole process. We can’t reach any kind of financial settlement because we don’t know what the pensions are worth.
– Katherine Laird, Secondary School Teacher
Uncertainty Clouds Handover to New Administrator
The Teachers’ Pension Scheme will transition from Capita to Tata Consultancy Services in October 2025, but it remains unclear if or how this will impact the CETV backlog. For now, educators can only wait as the human cost of the delays continues to climb.
While legislative changes upended public sector pensions, it’s the scheme members who are paying the price both financially and emotionally. Stuck in marital and financial purgatory, these teachers long for the day their pensions and futures are unfrozen.
