Before Pension Commencement: - Spouse receives share of the benefits by an immediate locked-in transfer to a prescribed retirement savings vehicle.
- Applies where DC account is used to purchase of an annuity and where DC account may be used to make withdrawals after pension commencement.
- If administrator consents, spouse can become a limited member.
After Pension Commencement:
| Before Pension Commencement: - Spouse becomes a limited member.
- After member becomes eligible to start the pension, spouse can take:
- a lump sum transfer (subject to the PBSA locking-in provisions); or
- a separate pension payable for the spouse’s lifetime
(Under the FRA, a separate pension was only available if the spouse waited until the member elected to have the pension commence.) - Calculation of benefit: Former spouse's separate pension is calculated based on the value of the benefits if the member had commenced a pension at the average age of retirement for the plan (even though FLA permits a spouse to elect a separate pension at any time after the member is eligible for pension commencement)
After Pension Commencement: |
Before Pension Commencement: - Spouse’s share of the benefits can be a separate pension, with other options available with the consent of the plan administrator
(The FRA required the spouse to wait until the benefits become payable and then take a share of the income stream.) After Pension Commencement: - No substantive change from FRA.
| Individual Pension Plans (IPP): - Spouse becomes a limited member and receives the share by separate pension when the member elects to start the pension, with other options available with the consent of the plan administrator.
- Change from the FRA which only allowed for a division of the income stream after pension commencement.
Disability Benefits to be Divided Pursuant to an Agreement or Order: - Spouse can receive a share at any time after the agreement or order is made.
(Under the FRA, the provisions in respect of disability benefits only applied after the member attained age 60). |