Marriage Breakdown - Bill 133
New rules take effect January 1, 2012 that will affect pension asset division on marriage breakdown.
Outline of New Process
As of January 1, 2012, a division of Pension Plan assets cannot be processed unless you (or your married spouse) first ask Western to prepare a Statement of Family Law Value. The Statement will provide information about the value of the Pension Plan entitlements earned during your relationship. The forms, administered by the Financial Services Commission of Ontario (FCSO) have been finalized. We have provided links to the forms and to some questions and answers that have been posted by the FSCO.
Please note: In order to provide the Statement of Family Law Value, Western will require copies of certain documentation and payment of a $200 fee.
Once a completed request for a Statement of Family Law Value and the required fee have been received by Western Human Resources (Room 5100, Support Services Building), the Statement will be prepared and sent to you and your spouse within 60 days. The Statement is designed to be used in connection with all other relevant information to arrive at a settlement of family property between you and your spouse. The settlement may take the form of a separation agreement, a family arbitration award, or a court order.
Your settlement may or may not ultimately require your Pension Plan entitlements to be divided with your spouse. If your Pension Plan entitlements are to be divided, Western requires a copy of your separation agreement, family arbitration award, or court order dated on or after January 1, 2012 that specifies the dollar value or the percentage of your Pension Plan entitlements to be transferred to your spouse.
A few points of note:
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Transfers to a spouse cannot be more than 50% of the Pension Plan entitlements earned during the spousal relationship.
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The new legislation will provide for immediate transfer of funds to your spouse. Prior to 2012, Pension Plan entitlements could not be divided until the Pension Plan member’s termination from employment or normal retirement date. Once a transfer to your spouse is completed, your Pension Plan accounts will be adjusted to reflect the transfer.
- You may wish to read these tips for completing the FSCO forms.
For members/former spouses who have a settlement order, award or agreement with an effective date prior to January 1, 2012, the Financial Securities Commission of Ontario (FSCO) has stated that no retroactive application of the new rules will apply. If you have questions, please contact FSCO directly at 1-800-668-0128 or email contactcentre@fsco.gov.on.ca.
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