In the Jamie example, Brigitte is the ex-spouse who obtained a PAO over his PRSA. Who is the PAO served on in that example?

In the Jamie example, Brigitte is the ex-spouse who obtained a PAO over his PRSA. Who is the PAO served on in that example?

• A. Jamie
• B. Brigitte
• C. ABC Life Co.
• D. Jamie and ABC Life Co., jointly

Answer: (B)

A PAO (Pension Attachment Order) is a legal instrument that attaches to a pension or PRSA to give a dependent spouse a claimed right to payments from that policy. The order is directed at the person who will benefit from the order, i.e., the claimant, so that the pension administrator can make payments to that person. In the Jamie example, Brigitte already has obtained the PAO over Jamie’s PRSA, meaning Brigitte is the beneficiary of the order. Therefore the PAO is served on Brigitte, granting her the right to the portion of Jamie’s PRSA payments. The other options don’t reflect Brigitte’s role as the recipient of the PAO’s effect: Jamie is the payer/holder, ABC Life Co. is the administrator, and serving on both jointly isn’t how the beneficiary-attachment works in this scenario.

A PAO (Pension Attachment Order) is a legal instrument that attaches to a pension or PRSA to give a dependent spouse a claimed right to payments from that policy. The order is directed at the person who will benefit from the order, i.e., the claimant, so that the pension administrator can make payments to that person.

In the Jamie example, Brigitte already has obtained the PAO over Jamie’s PRSA, meaning Brigitte is the beneficiary of the order. Therefore the PAO is served on Brigitte, granting her the right to the portion of Jamie’s PRSA payments. The other options don’t reflect Brigitte’s role as the recipient of the PAO’s effect: Jamie is the payer/holder, ABC Life Co. is the administrator, and serving on both jointly isn’t how the beneficiary-attachment works in this scenario.