Family Law related FAQs - Pension Benefits That are Not Subject to the Pension Benefits Act

 

 

​​Q800. How do the new family law provisions of the Ontario Pension Benefits Act apply to Ontario employees of federally registered pension plans?

 
A800. Section 10.1(2) of the Ontario Family Law Act (FLA) provides that Ontario pension plan assets that are not subject to the Ontario Pension Benefits Act (PBA) must be valued, “where reasonably possible”, in accordance with section 67.2 of the PBA with “necessary modifications”. This would apply to federally registered pension plans.
 
For Ontario employees of federally registered pension plans who are  subject to the federal Pension Benefits Standards Act, 1985 (PBSA) [New Window], the plan administrator must comply with the minimum legislative standards under the PBSA relating to vesting rules, transfer options, the maximum amount that may be assigned or paid to the former spouse, etc.
 
The Office of the Superintendent of Financial Institutions [New Window] (OSFI) regulates federally registered pension plans in Canada. Issue 3 of OSFI’s InfoPensions [New Window] newsletter explains section 25 of the PBSA [New Window] , as it relates to the applicability of provincial property law to pension benefits and pension benefit credits under a private pension plan that is federally regulated. Issue 8 of OSFI’s InfoPensions [New Window] sets out OSFI’s expectations related to marriage breakdown and the applicability of the FLA to federally registered pension plans. Federal plan administrators and plan members may contact OSFI to get further information. -03/2015

 

 
Q801. How do the new family law provisions of the Ontario Pension Benefits Act (PBA) apply to Ontario employees who have benefit entitlements under Supplemental Employee Retirement Plans (SERPs)?
 
A801. Section 10.1(2) of the Ontario Family Law Act (FLA) provides that SERP assets must be valued, “where reasonably possible”, in accordance with section 67.2 of the PBA with “necessary modifications”.
 
SERPs are not usually subject to the PBA. Therefore, they are not regulated by Financial Services Commission of Ontario. Plan administrators are responsible for determining how section 10.1(2) of the FLA must be applied to their SERPs. SERP plan members should contact their plan administrator if they have any questions. -08/2012

 

For more information: FAQs - Valuation and Division of Pension Assets on Breakdown of a Spousal Relationship   

 

[Information] Want to view a link in a new window?
Right-click the link and select "open in new window"
 

 
Follow FSCO on social media  

Outage  Scheduled Online Service Disruption Notice
Please consult our outage schedule for more details.