The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 passed into law in July 2010 but has not yet been brought into effect.  Under the Act a same sex couple can register their relationship as a civil partnership and gain many of the rights, obligations and protections available to married persons.

In relation to pensions, the Act provides that where a pension scheme provides a benefit to a member’s spouse, the scheme must provide the same benefit to a member’s civil partner.  This will affect any spouse’s death in service and/or death after retirement benefits provided under the scheme.  The Pension Adjustment Order regime, which applies to married persons, will apply in the event of the dissolution of a civil partnership.  No amendment will be required to be made to the legal documentation governing a pension scheme (Trust Deed and Rules) to give effect to these legislative changes (as the legislation will be overriding on the scheme rules and provisions) but schemes will be free to do so if they wish.  Otherwise for practical purposes, each scheme will (when the legislation comes into effect) need to record any member’s civil partnership status and ensure that appropriate cover is in place for a member’s civil partner (as for a member’s spouse) in respect of any insured risks or benefits applicable. 

The Act also includes the concept of a qualified cohabitant (one of 2 adults living together as a couple in an intimate and committed relationship for more than 5 years or 2 years if they have children).  However the Act does not impose an obligation on pension schemes to extend spouse’s benefits to qualified cohabitants.  It simply provides that the Pension Adjustment Order regime will apply in the breakdown of a qualified cohabitant’s relationship (in the same way as for a married person or civil partner).