![]() ![]() If the pension had a 60% survivor benefit, on the death of the pensioner, their ex-spouse could see an increase in their pension to $600 per month.Īnyone separating or divorcing should seek legal advice from a family lawyer about the division of pension and other assets. The spouses would each receive $500 per month. As an example, imagine a pension of $1,000 per month that was divided 50/50 upon divorce and after retirement. Interestingly, if there was a survivor benefit at the time the pension began, the non-pensioner spouse’s pension income could increase upon their ex-spouse’s death. If the pensioner has already started to receive their pension, the non-pensioner spouse may be entitled to a portion of the monthly payment. If the non-pensioner spouse is in a pension plan with their own employer, they may be eligible to transfer their share to that plan to increase their future benefits. ![]() A portion of the pension value may be transferred to a locked-in RRSP for the non-pensioner spouse, though some may be considered a taxable payment to them. An actuarial calculation is done to determine the present value of the future pension benefit that has been earned. If the pension is a defined benefit (DB) pension with future monthly payments the pensioner has not yet started to receive, the pension needs to be valued. The appropriate dollar amount can be transferred to a locked-in Registered Retirement Savings Plan (RRSP) for the recipient spouse on a tax-deferred basis. If the pension is a defined contribution (DC) pension comprised of mutual funds, the division is relatively easy. A non-pensioner spouse may be entitled to up to half of the pension earned during the relationship but may agree to receiving a larger share of other assets instead of a share of the pension. That property division may include a pension plan. When a couple separates or divorces, a division of property generally takes place to equalize the spouses. As a result, Ginette, you will not have any CPP survivor’s pension entitlement.īefore addressing the military pension question, I want to offer some context for other readers. A legal spouse who is separated may qualify for the benefit however, a divorced ex-spouse is not entitled to a survivor’s pension. To be eligible, the survivor must have been legally married to the deceased or have been their common-law partner. The CPP pays a survivor’s pension upon the death of a CPP contributor. This is called CPP credit splitting, and it may result in a spouse who made lower contributions to CPP receiving a higher retirement pension in the future. As you may already know, the end of a marriage or common-law relationship doesn’t automatically sever all ties between partners.Ĭanada Pension Plan (CPP) contributions made while common-law or married spouses were living together can be divided upon separation or divorce. Am I allowed any amount of his CPP or his military pension, although we were divorced?Ī. ![]()
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