Expert Witness Journal Issue 68 August 2026 - Flipbook - Page 88
A short treatise on pension
sharing and o昀昀setting
by Peter Crowley, Actuary & Owner of Windsor Actuarial Consultants Ltd
Pension sharing usually involves a reduction in total
pension income.
For o昀昀setting, it seems logical to value the pension
at a level between the two.
It’s because pension is “sold” using the cash
equivalent (CE), actuarially pushed down.
Removing the margins added to the annuity –
adding back those removed from the CE.
Pension is then purchased using market annuity
rates, which are actuarially pushed up.
Unfortunately, CE’s are not reliable – especially
public sector ones.
So there is a gap between buying and selling price
which works against the parties.
Therefore, we adjust annuity rates in o昀昀setting to
remove the margin.
Maybe 10% - 20% of the income.
That’s it.
Windsor Actuarial Consultants is an
independent firm of actuarial consultants
with considerable expertise in derivatives
and pensions. Our excellent actuarial
consultancy is complemented by our
cutting-edge software and technical
support.
We are an owner-managed business.
Our consultants are major stakeholders in
the firm. They can provide the advice our
clients need and they also have a vested
interest in ensuring that they get the best
service possible.
The level of personal commitment from us
could not be higher.
Our clients include family lawyers, trustees
and sponsors of pension schemes,
financial advisers, solicitors and
individuals.
Peter Crowley, established Windsor
Actuarial Consultants in 2005, combines
a wide experience of financial products
and pensions with a commitment for
explaining the concepts in plain English.
4 St. Marys Road
London
W5 5ES
Work undertaken worldwide
Tel: 020 7653 1908
mail@windsorac.com
www.windsorac.com
EXPERT WITNESS JOURNAL
86
Peter also advises solicitors and other
professionals on the individual aspects of
pensions in divorce, compensation on
the loss of pension rights, pensions
mis-selling and reversions. He has
produced a substantial number of reports
on this subject,involving cases of varying
complexity, and including overseas
pensions
Windsor Actuarial Consultants are
sponsors of Chessboxing Nation
www.chessboxingnation.com
AUGUST 2026
