I have recently, over the period of the...

Question: I have recently, over the period of the last three years, been dealing with a case of a pensions sharing order for which the actuaries calculated (2006) that if the wife was granted 100% of her husband's pension rights in a final salary scheme which was in payment to him at the time the CETV would be £266,000 or so. When the decree absolute was granted and the pension sharing order finalized earlier this year she had indeed been granted 100% of the pension her husband had and she had been offered benefits for herself within the occupational scheme of her former husband but at her NRD which is a few years away. The actuaries then recalculated the CETV and came up with £211,000 or so saying that at November of 2008 the assumptions for calculating the CETV had changed. I cannot explain this and feel as if I should challenge the fresh calculation as to my mind all of the assumptions used latterly would have in fact increased the value rather than the opposite. The! lady concerned would have been considering seriously a SIPP with income drawdown or phased retirement with some of the benefits taken straight away if the previous CETV had been the appropriate figure but the reduction means that the critical yield required of the new CETV is around 13% per annum previously around 6% per annum. This suggests to me that it has been calculated wrongly. What do you think?