Relationship breakdown rules

Relationship breakdown rules

A division can occur only on the breakdown of a spousal relationship and in accordance with a court order or interspousal agreement made pursuant to The Family Property Act. A division cannot occur if there has not been a breakdown in the spousal relationship. The pension plan administrator cannot act on any other direction than that given by a court order or interspousal agreement.

The division of pension benefits is not mandatory. The couple may prefer, or the courts may order, a division of family property in such a manner that the member's or former member's pension benefits remain intact.

The member must maintain a prescribed minimum interest in the plan so as to not unduly change the employee-employer relationship. A division of pension benefits must not reduce the commuted value of the member's benefits to less than 50% of the commuted value of the member's benefits prior to the division.

For more information regarding division of pension benefits on breakdown of a spousal relationship read the Division bulletin.