What happens if pension figures change after the report is written?
Quick answer
Pension figures can change after a PODE report because markets, contributions, scheme calculations or rule changes move over time. Pension Sharing Orders use percentages rather than fixed sums to reduce the risk of unfairness if values change before implementation.
Introduction
When a Pension on Divorce Expert (PODE) writes a report, it's always based on the best available pension figures at the time. But pensions are a moving target. Their value can change because of markets, contributions, scheme revaluations, or rule changes.
Here are the three things you need to know.
Why pension sharing orders use percentages
The law requires a Pension Sharing Order (PSO) in England & Wales to be expressed as a percentage, not a fixed cash sum. That's deliberate: it prevents unfairness if the pension's value changes between the date of the report and the date of implementation.
A percentage means both parties share in any growth or loss fairly. If the pension doubles, both benefit; if it falls, both take a smaller share.
Example of what happens if it goes wrong:
Let's say a PSO is mistakenly written as a fixed sum. £250,000 out of a pension then valued at £1 million. But by the time of implementation, the pension was worth almost £2 million. The recipient would still only receive £250,000, just 12.5% of the pension, rather than the intended 25%. The pension share becomes significantly inequitable.
That's exactly why PSOs are percentages: they flex with the moving target.
All pension figures are moving targets
Even with percentage orders, pensions are never ‘set in stone’:
Defined contribution pension values shift with investment markets and contributions
Defined benefit pensions can be recalculated when service records are corrected or scheme assumptions change
Public sector schemes, particularly those affected by the McCloud remedy, may still be revising their figures months or years after initial values were provided
This means the monetary figures in your PODE report are always a snapshot, not a promise. The percentage in the court order is what holds.
When to get an updated report
If only a few weeks have passed, small differences rarely justify an update. But if many months or years go by before the order is made or implemented, which is not uncommon, the monetary impact can be significant.
In those cases, an updated PODE report can:
Check whether the original recommended percentage is still fair
Provide solicitors and clients with realistic current monetary estimates
Avoid later disputes, especially where one party feels surprised by how much (or how little) the pension credit turns out to be
The bottom line
Pension figures are always on the move. That's why PSOs are written as percentages, to protect both parties from unfair outcomes if the pension grows or shrinks before implementation.
Even so, expectations need to be managed: the monetary sums shown in reports are only estimates. If a long time has passed, or big changes have occurred, getting an updated report is the best way to ensure fairness and avoid nasty surprises.
What to do next
If your PODE report was written some time ago, or pension figures have changed significantly, it may be worth considering an updated report.
Get in touch with us hello@thepode.co.uk if this might apply and you need some further advice.
