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Family law - Questions & Answers

(Archived on August 17, 2012)
Q15. Effective January 1, 2012, section 3500 of the Canadian Institute of Actuaries Standards of Practice must be used to calculate the Preliminary Value.  What must be used if the Family Law Valuation Date (separation date) is before January 1, 2012?
 
A15. In FSCO’s view, section 3(2) of Ontario Regulation 287/11 requires that section 3500 of the Canadian Institute of Actuaries Standards of Practice must be applied when calculating the Preliminary Value, regardless of the Family Law Valuation Date.  This means that section 3500 applies, even if the Family Law Valuation Date is a date before January 1, 2012.
 
For example, if the Family Law Valuation Date is in 1996, the interest rates must be determined using the methods and CANSIM series outlined in section 3500 in effect at the Family Law Valuation Date in 1996. Those same rates will be used to update the Family Law Value to the date of transfer. Similarly, the mortality table used must also be in accordance with section 3500. -03/12
 
(Archived on December 14, 2012)
Effective January 1, 2012, Ontario Regulation 467/11 [New Window] amends Ontario Regulation 287/11 [New Window] (Family Law Matters) by temporarily adding the unproclaimed section 1.1 Pension Benefits Act (PBA) definitions of “retired member” and “former member. Once the new (Bill 236 [New Window]) section 1.1 PBA definitions come into force, the definitions in the Family Law Matters regulation will automatically be revoked.
 
Q40: A terminated member has made an election to transfer the commuted value of his pension to his locked-in account. Because the pension plan has a transfer ratio of 70%, 70% will be transferred immediately and the remainder will be transferred in 5 years. Our reading of 2.1(4) of Ontario Regulation 287/11 (Family Law Matters), as amended by Ontario Regulation 467/11, is that the person is not a “former member” for purposes of the regulation. How do we calculate the Family Law Value?
 
A40: The person in this situation should be treated as a deferred member when determining the Family Law Value of the 30% of the commuted value that remains in the pension plan. The definition of “former member” should not be interpreted in a way to exclude this class of plan member. -12/11