Pension Valuation and Pension Dividing in divorce

Pension Valuation and Pension Dividing in divorce
  • There is no pension value calculator.

  • You need to engage the pension plan administrator to get the value of a pension.

  • The Pension Plan Administrator may charge a fee for valuing the pension.

  • Canadian law provides that married people be granted an equalization payment when divorcing unless they agree to something different.

  • The highest amount a spouse can receive out of their partner’s pension is 50%.

  • A federal public service plan, which typically applies to people who have worked for the Canadian government, such as the Canadian Army or The Royal Mounted Canadian Police.

  • A federally regulated plan, which applies when a person works for certain non-government employers such as airlines, banks, or railroads.

Additional Voluntary Contributions Family Law Terminology

Additional Voluntary Contributions

Additional Voluntary Contributions: contributions to a pension plan made voluntarily by an employee besides those required for plan benefits. Extra benefits are purchased by the additional contributions, but no additional cost is borne by the employer.

Division of Pension Credits

Division of Pension Credits:  Is a provision in pension plan and/or pension plan legislation whereby one spouse has an entitlement to a portion of the pension of his/her spouse upon divorce. The other spouse may obtain his/her entitlement from his/her partners’ pension based on the time they were married. Division of pension credits is also referred to as credit splitting.