Member Article

Defined Contribution (DC) Plan

Defined Benefit (DB) Plan

Before Pension Commencement:

• Spouse receives share of the benefits by an immediate locked-in transfer to a prescribed retirement savings vehicle.

• Applies where DC account is used to purchase of an annuity and where DC account may be used to make withdrawals after pension commencement.

• If administrator consents, spouse can become a limited member.

• No change from FRA.

Before Pension Commencement:

• Spouse becomes a limited member.

• After member becomes eligible to start the pension, spouse can take:

• a lump sum transfer (subject to the PBSA locking-in provisions); or

• a separate pension payable for the spouse’s lifetime

(Under the FRA, a separate pension was only available if the spouse waited until the member elected to have the pension commence.)

• Calculation of benefit: Former spouse's separate pension is calculated based on the value of the benefits if the member had commenced a pension at the average age of retirement for the plan (even though FLA permits a spouse to elect a separate pension at any time after the member is eligible for pension commencement)

After Pension Commencement:

• No change from FRA.

Supplemental Plan

Other Plans

Before Pension Commencement:

• Spouse’s share of the benefits can be a separate pension, with other options available with the consent of the plan administrator

(The FRA required the spouse to wait until the benefits become payable and then take a share of the income stream.)

After Pension Commencement:

• No substantive change from FRA.

Individual Pension Plans (IPP):

• Spouse becomes a limited member and receives the share by separate pension when the member elects to start the pension, with other options available with the consent of the plan administrator.

• Change from the FRA which only allowed for a division of the income stream after pension commencement.

Disability Benefits to be Divided Pursuant to an Agreement or Order:

• Spouse can receive a share at any time after the agreement or order is made.

(Under the FRA, the provisions in respect of disability benefits only applied after the member attained age 60).