Breaking up is hard to do
Valuation & Division of Pension Assets on Breakdown
of a Spousal Relationship
2014
Purpose of this Seminar
• Outline the rules for the valuation and division of pension
assets upon the breakdown of a spousal relationship that
came into effect on January 1, 2012
• Show how to request a valuation
• Provide an overview of the relevant forms & fee’s
The rules have changed.
• New rules and a new process for the valuation and division of
pension assets following the breakdown of a spousal
relationship came into effect on Jan. 1, 2012
• This family law pension valuation and division regime requires
the pension plan administrator to calculate the value of the
pension, provides for immediate division, and mandates the
use of Superintendent of Financial Services approved forms
throughout the process
To whom do the new rules apply?
• All spouses whose relationship breaks down and whose
Settlement Instrument is signed on or after January 1, 2012,
are subject to the new pension valuation and division rules
• Spouses whose Settlement Instrument was signed before
January 1, 2012 are subject to the old pension valuation and
division rules unless their Settlement Instrument did not deal
with the pension assets
Financial Services Commission of
Ontario (FSCO) – Family Law Forms
• FSCO has developed approved forms that relate to the
valuation and division of pension assets on breakdown of a
spousal relationship. These FSCO family law forms must be
used by plan administrators and spouses when pension assets
are to be valued and/or divided
• The FSCO website provides all of the necessary forms and
answers to Frequently Asked Questions
• The link to FSCO is:
http://www.fsco.gov.on.ca/en/pensions/Family-Law/Pages/familylawforms.aspx
How to apply for a Family Law Value
• Complete the mandatory Application for Family Law Value
(FSCO Form 1)
– If you are/were in a common-law relationship, only the
Plan Member may complete this Application Form
– You must provide all required documents and pay the fee
in order to get your Family Law Value
Required Documents
• Proof of Plan Member’s date of birth (e.g. certified
copy of a birth certificate, baptismal certificate,
passport)
• Proof of date of birth of the spouse/former spouse of
the Plan Member (e.g. certified copy of a birth
certificate, baptismal certificate, passport)
Required Documents
• Proof of the starting date of your spousal relationship
(married or common-law). Provide one of the following:
– Certified copy of your marriage certificate
– Joint Declaration of Period of Spousal Relationship (FSCO
Family Law Form 2)
– Certified copy of a court order, family arbitration award or
domestic contract
Required Documents
• Proof of your separation date. Provide one of the following:
– Joint Declaration of Period of Spousal Relationship (FSCO
Family Law Form 2)
– Appendix A of this Application for Family Law Value (FSCO
Family Law Form 1)
– Certified copy of a court order, family arbitration award or
domestic contract
What is a “certified copy”?
A “certified copy” is a copy of the original document
that has been certified as being a true copy of the
original document. Typically, people who provide
certification include lawyers, notaries and Human
Resource personnel
Contact Person Authorization
FSCO Family Law Form 3
• If you and/or your former spouse wish to authorize a
lawyer or someone else to communicate with and
receive information from us on your or your former
spouse's behalf, we must receive a completed
Contact Person Authorization (FSCO Family Law Form
3) with your application
Fee’s and Obligation
• The fee for the first valuation is $400 and $800 for
any subsequent applications
• Our regulatory obligation is to provide the Family
Law Value within 60 days of receiving a completed
application
To divide or not to divide the
Family Law Value?
• Once you've received your Statement of Family Law Value,
consult your family lawyer and/or financial advisor for
professional advice
• Decide if you're using your pension to settle your equalization
obligation
• Get a court order, enter into a domestic contract or seek a
family arbitration award.
If the decision is not to divide
• Use FSCO Family Law Form 7 - No Division of Family Law
Value/Pension Assets to let us know that the Family Law Value
will not be divided
• To be jointly completed by the pension plan member and his
or her spouse/former spouse
If the decision is to divide
The former spouse of the Plan Member must complete and send
an Application to Transfer the Family Law Value (FSCO Family
Law Form 5) to us and include the following information:
•
A certified copy of the court order, family arbitration award
or domestic contract made on or after January 1, 2012,
under the Ontario Family Law Act that:
– (i) provides for the division of the Family Law Value;
– (ii) clearly specifies the amount that must be transferred to
the former spouse; and,
– (iii) clearly specifies the Family Law Valuation Date
When will share of the Family Law
Value be paid out?
• As Plan Administrator’s we have 60 days after
receiving a complete application, including all
required documents, to transfer share of the
Family Law Value in accordance with the
chosen transfer option
Transfer Options for the Former
Spouse of the Plan Member
• Transfer lump sum to a locked-in retirement account
(LIRA) or to a life income fund (LIF)
• Transfer lump sum to another pension plan. This option
will only be available if the Plan Administrator of the
receiving pension plan agrees to accept the transfer and
administer the transferred amount in accordance with
the Ontario Pension Benefits Act.
Re-cap of Process
Apply for Family Law Value
Family Law Value Provided within 60 days
Decide if using pension to settle equalization
obligation
Advise us of decision
If decision is to “divide”, payment of Family
Law Value within 60 days
Need to contact Pension & Benefits?
• E-mail askpb@yorku.ca
• Call 416-736-2100 extension 27572 (askpb) – the phone line is
open from 9:00 am to 4:00 pm Monday to Friday. For Fridays
in June, July and August the phone line closes at 3:00 pm
• Please have your employee ID ready when you call us.
• Any form or document that we may need from you can be
completed, scanned and emailed to askpb@yorku.ca