Credit and debits

The part of the pension given away to the ex-spouse will be shown on the member's scheme records as a 'pension debit', and the ex-spouse will receive a 'pension credit'. In a final salary scheme, the debit will be referred to as a 'negative deferred pension'. It is very likely that a member of a final salary scheme may have several different 'tranches' of pension accrual. A 'typical' final salary scheme may have a GMP element, pre-April 1997 non-GMP right and Reference Scheme Test (RST) benefits. The debit must contain a pro-rata slice of each different tranche. Therefore, if the debit is ...