24B—(1) On granting a decree of divorce, a decree of nullity of marriage or a decree of judicial separation or at any time thereafter (whether, in the case of a decree of divorce or of nullity of marriage, before or after the decree is made absolute), the court may make a pensions adjustment order (referred to in this section as "an order") for the benefit of a party to the marriage.
(2) An order shall where the court so determines bind a person who is not a party to the marriage but who is liable to pay any benefit under a pension scheme to a party to the marriage or any successor to such a person.
(3) An order is an order adjusting the rights and benefits to which either party to the marriage is or may become entitled to under any pension scheme and in particular the court may by such an order require—
- (a) either party to the marriage to pay to the other such lump sum or sums as may be specified in the order (without prejudice to any other order which may be made under section 23(1) or (3)); or
- (b) the administrator of a pension scheme to treat the party to the marriage in favour of whom the order is to be made as a member of the pension scheme in relation to such benefits as may be specified in the order which were acquired by the other party to the marriage before the decree of divorce or nullity was made absolute or before the decree of judicial separation, or
- (c) the administrator of a pension scheme to make such payment or payments as may be specified in the order into such other pension schemes as may be nominated by the party to the marriage in favour of whom the order is made, or
166 - (d) the administrator of a pension scheme to pay such part of any pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified not extending beyond the death of either party to the marriage, or
- (e) the administrator of a pension scheme to pay such part of any dependant's pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified beginning with the death of the other party to the marriage and not extending beyond the death of the party in whose favour the order is made, or
- (f) either party to the marriage to pay such administrative costs incurred by the administrator of the pension scheme in responding to any application for an order or in implementing an order.
(4) An order shall not be made—
- (a) under subsection (3)(b) above unless the administrator of the pension scheme consents to membership of the pension scheme for the party to the marriage who is not already a member of the pension scheme, or
- (b) under subsection (3)(c) above unless the court is satisfied that the administrator of the pension scheme nominated by the party in whose favour the order may be made has agreed to accept such payment or payments, and in the event of the administrator being unwilling to accept such payment or payments he may be required to notify the parties to the marriage and the court.
(5) It shall be the duty of the court in deciding whether to exercise its powers under this section and, if so, in what manner to have regard in particular to—
- (a) the matters referred to in section 25 save for the words "in the foreseeable future" in section 25(2)(a), (b) and (f), and
- (b) the effect that child care or other domestic responsibilities have had or will have on the ability of each of the parties to the marriage to make provision for his retirement, and
- (c) any administrative complexity or cost to the administrator of the pension scheme.
(6) The Secretary of State in agreement with the Lord Chancellor shall by regulations provide for the date and method of valuation to be applied by the court to rights under a pension scheme when making an order and to provide for notice of any application for an order to be given to the administrator of the pension scheme.
(7) The Secretary of State may by regulations make such provision as may be appropriate to meet the special circumstances of unfunded public sector schemes by varying or excluding the powers of the court under this section.
(8) Nothing in the provisions mentioned in subsection (9) below applies to a court exercising its powers under this section.
(9) The provisions referred to in subsection (8) are—
- (a) section 203(1) and (2) of the Army Act 1955, section 203(1) and (2) of the Air Force Act 1955, section 128G(1) and (2) of the Naval Discipline Act 1957 or section 159(4) of the Pension Schemes Act 1993 (which prevent assignment or orders being made restraining a person from receiving anything which he is prevented from assigning);
- (b) section 84 of the Pensions Act 1995;
- (c) any provision for any enactment corresponding to any of the enactments mentioned in paragraphs (a) and (b); and
- (d) any provision of the pension scheme in question.
(10) the making of an order shall in no circumstances form the basis of any decision made by the Commissioners of Inland Revenue to remove the exempt approved status or to alter the tax status of a pension scheme provided that— 167
- (a) the party to the marriage in whose favour an order has been made shall be treated for the purpose of retention of benefits as the member; and
- (b) the maximum benefits payable to and in respect of the party to the marriage whose rights have been varied by the order shall be limited to the benefits that would have been payable if the order had not been made.
(11) No order or orders shall be made which shall have the effect of increasing the liabilities of any pension scheme beyond those which might have been incurred had the parties to the marriage remained married until the death of the party against whom the order is to be made.
(12) After paragraphs (2)(f) of section 31 there shall be inserted:
"(g) any order made under section 24B(3)(d) or (e) above"
(13) After subparagraph (ii) in section 35(2) there shall be inserted:
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or (iii) by adjusting the rights and benefits to which either party to the marriage is or may become entitled under any pension scheme.
(14) Nothing in this section shall affect any proceedings commenced before the commencement of this section.
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(15) In this section—
administrator" means the trustees of an occupational pension scheme or the administrators or managers of such a scheme in the absence of trustees or the administrators or managers of a personal pension plan;
member" means a member of an occupational pension scheme or a person having a personal pension plan or retirement benefit plan or other similar arrangement; and
pension scheme" means an occupational pension scheme or personal pension scheme or retirement benefit plan or other similar arrangement.'.
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New clause 2—Pensions on divorce, etc (Life Assurance)—
'In the Matrimonial Causes Act 1973, after section 24B there is inserted: