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Ontario’s new pension rules for marriage breakdown

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Marc:

Both myself and my spouse have pensions and if I understand correctly the current value is calculated to the date of retirement the concern I have is that she is five years younger than me and she will get to contribute to her plan for five years that is not included in the calculations. It seems like I am being penalized for being older and being in the workforce longer.

Thursday, September 19 at 7:03 pm | Reply

Lori:

Marc: The calculations are made from the date of marriage to the date of valuation (separation). Anything accumulated after the date of valuation is not part of the calculation and is not applied in the valuation.

Thursday, October 31 at 2:04 pm | Reply

Marc:

Lori: Thank you for your reply I agree that the calculation would be fair if only one of us had a pension. The calculation is done to the date of retirement so I think they are trying to estabish the pensions value at the date of retirement. I am 5 year older so it stands to reason that I have more money in my pension now and the calulation is done with compound intrest so this make the value of my pension far greater than hers when in fact her pension at the date of retirement will be at least equal or higher than mine. She will have a better pension than me and get a large sum of money from mine this will reduce mine even further. To be far they should not be calculated foward using compound intrest or both be valued at our retirement dates

Monday, November 25 at 7:05 pm

Jean-Marc:

Marc,

The fact that you are older may mean any commuted value of pension benefits are higher, but that does not mean it is “unfair”. The calculation assumptions are there to recognize accrual during the marriage, and it does, yours was bigger. Hers will come later, but you will be separated by then. Although this explanation probably does not make you feel any better, I hope you can see the regulations are there to capture accrued values, the intent is not to try to “equalize” things.

It just so happens you accrued more while being married…

Monday, December 16 at 10:22 am | Reply

Marc:

Jean-Marc thank you for your responce if it is about accured values why is it calculated forward to the date of retirement? The fact that I do have more in my pension is true but adding compound intrest starting with a larger amount really doesn’t work.

Friday, December 20 at 12:12 pm

steve:

My wife and I just separated after 15years of marriage. We made similar incomes but she does not have a pension and I do. How is it calculated as to how much of my pension she is entitled too?

Friday, April 07 at 5:22 pm | Reply

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