Separation or divorce and your pension

Learn how a separation or divorce affects your pension and review the issues to consider.

Paying the divided pension benefit

If your former spouse becomes a limited member, they may be entitled to one of these payment options:

• A monthly pension
• A lump-sum payment to a locked-in retirement vehicle

Factors affecting your former spouse’s options include:

• Your age
• Whether you are eligible to retire (or have already retired)
• How you choose to receive your pension when you stop working (for example, as a monthly pension or a lump-sum payment if you are eligible for one)

If your former spouse becomes a limited member, they can receive their share of the pension when you reach your earliest retirement age. They will receive it as a lifetime monthly benefit.

We will not contact your former spouse to let them know this date. They are responsible for applying for their share of the pension if they wish to begin receiving it at your earliest retirement age.

If you leave your job before reaching your earliest retirement age and are eligible, you may choose to receive your benefit as a locked-in lump sum transfer to a registered retirement plan. Your former spouse must do the same with their portion.

If you and your spouse separate or divorce after you retire, the pension option you chose at retirement will apply to both your share and your former spouse’s share of the pension.

Depending on the pension option you selected when you retired, your former spouse may continue to receive the pension after your death.

If your former spouse has not drawn on their share of the pension but has submitted a separation agreement, court order or Form P9 Agreement to have benefits divided to claim an interest in your pension, we will contact them and give them 30 days notice before processing their pension payments.

If your former spouse was entitled to a share of your pension and did not become a limited member before their death, their personal representative has 30 days from the date of our written notice to apply to become a limited member.