Time for Sir Fred to Divorce his wife
Harriet Harman (QC) has said former Royal Bank of Scotland (RBS) chief Sir Fred Goodwin should not "count on" keeping his full £650,000 a year pension.
"Sir Fred Goodwin should not count on being £650,000 a year better off because it is not going to happen," she told BBC One's Andrew Marr show.
The inference being that, Government will change the law.
In December 2000 the law on pensions splitting was changed. Welfare Reform and Pensions Act 1999
On divorce, a spouse can now be entitled to half of the main breadwinner's pension. This applies to the tax-free lump sum as well.
This means that one spouse can lay immediate claim to a percentage of their partner's pension pot and move the money to another fund. They will no longer have to wait around for their partner to retire. This means that there can be a cleaner break in the divorce and it allows each partner more direct control over their finances. Pension schemes will have to make a cash transfer available so that the other spouse can start a new fund.
Oh, I just love the tangled webs we weave