Relationship Changes

It’s important to know how relationship changes may impact your pension. Your pension and survivor benefits may be affected if you get married or become common-law, or if your relationship ends.

Your spouse or partner receives special protections under several different provincial and federal laws and is also protected under the Plan rules. Pensions are considered a matrimonial asset and can therefore be divided upon a separation or divorce.

However, not every separation or divorce will result in a division of a member’s pension. You and your pension partner have the option to agree that other assets of equal value can offset the value of the pension benefit. Alternatively, you and your non-member spouse or common-law partner might decide not to divide any assets, leaving your PSPP pension unaffected.

It is important to seek independent legal advice regarding a division of your pension. For more detailed information, your legal representative can refer to our Instructions for Lawyers and Questions and Answers document.

If you and your partner separate or divorce, please inform us as soon as possible by sending a Secure Message through Your Pension Profile (YPP) to update your pension partner information.

Did You Know?

  • Both married and common-law partners are allowed to submit a property division order (PDO) or agreement for the division of their pension benefits.
  • Completing a Pre-Retirement Death Benefit Waiver or a Pension Waiver does not protect your pension from being divided. Either document can be revoked by your spouse or partner at any time, reinstating them as the sole beneficiary of your pension benefit.
  • If you provide us with a draft PDO or separation agreement, we will review it to ensure it meets the requirements under the Plan rules. This step can save you time and money if changes are needed. Please note, a PDO or separation agreement that does not comply with the Plan rules will not be accepted.

Pre-Retirement Relationship Changes

  • Non-vested member (Not yet entitled to a pension): The partner receives a share (as defined in the PDO or agreement) of the lump sum payout of the member’s total contributions, plus interest.
  • Vested member (Entitled to a pension): The partner receives a share of the commuted value of the pension, which must be transferred to a Locked-In Retirement Account (LIRA). The member retains their share of the pension in the Plan.

Post-Retirement Relationship Changes

Share of Pension Payments: a lump sum payment to the non-member spouse is not an option. If the member’s partner is entitled to a division of the member’s monthly pension payments, the member’s monthly payments will be split according to the division outlined in the PDO or separation agreement. These payments are made directly to the partner on a monthly basis.

Ending a Relationship Before Retirement

Whether you were in a marriage or in a common-law relationship that has ended, there are several things to know when it comes to your pension in these situations. If you are still legally married but have been living separate and apart for at least three years, you are considered separated.

If you are going through a separation or divorce, an important first step is determining the value of your pension by requesting a Total Entitlement estimate in writing or by Secure Message through Your Pension Profile. This estimate is a statement of the value of the PSPP pension benefit for the period you were married or living together up to the date of separation. This is called the joint accrual period.

Please note, when a member requests a Total Entitlement estimate, your pension partner is also sent an estimate. Your pension partner can also request this estimate.

Written Total Entitlement estimate requests must include:

  • The signature of the person requesting the estimate,
  • The full names, current address, and current phone numbers of both the PSPP member and the partner (a current address and phone number can be care of a lawyer),
  • An estimated beginning and end date for the joint accrual period. The end date must be either a date before the request, or the date of the request,
  • If the request is from, or is to go to, a PSPP member’s lawyer, an authorization signed by the PSPP member to disclose the estimate to that lawyer,
  • If the request is from, or is to go to, a partner’s lawyer, an authorization signed by the partner to disclose the estimate to that lawyer.

You can submit the Total Entitlement request via Secure Messages in Your Pension Profile, by mail, or by fax . If you have any questions about requesting a Total Entitlement estimate, a member or pension partner can contact us.

Property Division Order or Separation Agreement

In order to divide a PSPP pension between you and your pension partner, a PDO that complies with the applicable legislation or a Separation Agreement in administrable form will need to be filed with PSPP. Your partner’s share is limited to no more than 50% of the total pre-division benefit. Your PSPP pension entitlement will be reduced to account for the portion paid to your former pension partner.

Please note, a PDO or separation agreement that does not comply with the applicable legislation will not be accepted. Consult your lawyer on how to obtain a PDO or separation agreement. You can also provide us with a draft PDO or agreement for review to ensure compliance with the applicable legislation. This step can save you time and money. For more information regarding the PDO or agreement, please refer to our Instructions for Lawyers.

Once your PDO or separation agreement is issued or finalized, a court-certified copy should be filed with us as soon as possible. Please note, your pension benefit cannot be divided until the PDO or agreement has been filed with us.

Delayed Division

If the PSPP member is vested (entitled to a pension) at the end of the period of joint accrual and is also within 10 years of the plan’s pension eligibility date, the partner can choose to delay the calculation and distribution of the value of the pension benefits until the member:

  • Begins the PSPP pension,
  • Triggers a benefit payment on leaving the Plan,
  • Completes a transfer, or
  • Passes away.

Adult Interdependent Partners

Adult interdependent partners who do not meet the definition of pension partner are not eligible for a division of pension benefits. However, Plan members who were in an adult interdependent relationship can request information about the value of their pension benefit. These statements can be used to demonstrate the pension accrued during the period of interdependence.

To request a statement, the member must submit a written request with the following information:

  • The signature of the member,
  • The full name, current address and current phone number of the member,
  • A beginning and end date of the period of interdependence (the end date must be either a date before the request, or the date of the request), and;
  • If the request is from, or is to go to, a member’s lawyer, we require an authorization signed by the member allowing us to share the estimate with that lawyer.

Please note, only the plan member may request this statement. A copy will not be provided to the member’s adult interdependent partner.