Can I use the value of my pension, determined as if I had terminated from the pension plan, for the purposes of determining the value of the pension for marriage breakdown?
The quick answer is, not likely. The Canadian Institute of Actuaries has different standards governing the calculation of a commuted value and the calculation of a capitalized value of a pension for matrimonial pension division purposes. The Standard of Practice for determining pension commuted values is in Section 3800 and is to be used when a registered pension plan member elects to receive a lump sum settlement from the plan in lieu of an immediate or deferred lifetime pension. The Standard of Practice for the capitalized value of pension plan benefits for a marriage breakdown is in Section 4300 and is to be used when the parties settle the division of a pension as family assets on marriage breakdown. It usually involves the member spouse paying a lump sum equalization payment to the non-member spouse either on a before-tax basis (e.g., RRSP funds) or on an after-tax basis (e.g., equity in the principal residence) to compensate the non-member spouse so the member spouse can retain m
- Can I use the value of my pension, determined as if I had terminated from the pension plan, for the purposes of determining the value of the pension for marriage breakdown?
- What happens to my pension funds in the case of a marriage or spousal relationship breakdown?
- Does an "unvested" pension have value for purposes of equitable distribution?