Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 01-22-2014, 03:49 PM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default Question on DC Pension Split

I have a mediation agreement with my ex that stipulates we split my pensions for the time we were married. The one Defined Benefit plan was no problem, that is taken care of. Unfortunately the Defined Contribution plan has not been acted on. When we split in 2003 the value was $4900. Today the value is approximately $20,000. I am turning 60 soon and will not be working so I would like for her to get her split but I am unsure as to the amount she gets. I have seen various examples of how to determine value but they all use an arbitrary figure (such as 5% per year) that is used on the amount of money she would have received in 2003 ie 2450 x 5% x 11 years = approximately $4200. Does anyone have better information that I should be using. It seems silly to employ an actuary for such a small amount. I would also like to transfer this amount to an RSP or similar vehicle in her name to avoid the tax implications. Any & all advice would be most appreciated.
Reply With Quote
  #2 (permalink)  
Old 01-22-2014, 04:27 PM
FWB's Avatar
FWB FWB is offline
Senior Member
 
Join Date: Dec 2013
Posts: 548
FWB is an unknown quantity at this point
Default

Quote:
but I am unsure as to the amount she gets.

Right off the bat, the pension split if from the date of marriage, to the date you split. This following blurb might be of importance to you as you are yet to retire:

Quote:
If you and your spouse/former spouse were married and separate after retirement, the spouse at retirement retains the right to a survivor pension. Ontario law requires that the value of the pension you earned during your time together be included in the calculation of net family property. There is no requirement to divide the pension, only to consider its value in the division of all family property.
https://www.caatpension.on.ca/en/ret...ion-or-divorce

More info here for ya......

https://www.fsco.gov.on.ca/en/pensio...breakdown.aspx
Reply With Quote
  #3 (permalink)  
Old 01-22-2014, 05:15 PM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default

Thanks very much but I still find that open to some interpretation. On the one hand she is only entitled to the $2450 that would have been hers in 2003. However there would have been growth of that money minus the payments that were added over the ten years by my employer. It isn't clear to me what is a fair value.
Reply With Quote
  #4 (permalink)  
Old 01-22-2014, 05:46 PM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default

Also we will be divorced prior to my retirement. We are just in the process of starting that, but after 10 years there is no rush. It is just that I would like the divorce final before I retire.
Reply With Quote
  #5 (permalink)  
Old 01-22-2014, 09:29 PM
Rioe's Avatar
Senior Member
 
Join Date: May 2010
Location: Ontario
Posts: 3,211
Rioe will become famous soon enough
Default

What was the reason for the eleven year delay? If it was the ex's fault, I would say she is not entitled to any growth, just the amount from 2003. If it was your fault, then growth should be included in the split.

Your pension administrator may be willing to do all these calculations at little to no cost to you. It needn't be an independent actuary unless your ex insists, in which case she can foot the bill. As you noted, the amount is not large enough to warrant it.
Reply With Quote
  #6 (permalink)  
Old 01-22-2014, 10:30 PM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default

It is most definitely my fault. I could say that I didn't understand but it was up to me to find out. The reason I picked 5% as the annual interest is I believe that is what the teachers use as a base to calculate the pension owed in their plan.
Reply With Quote
  #7 (permalink)  
Old 01-23-2014, 07:04 AM
FWB's Avatar
FWB FWB is offline
Senior Member
 
Join Date: Dec 2013
Posts: 548
FWB is an unknown quantity at this point
Default

Quote:
It is most definitely my fault.
Self awareness and admittance are good qualities to have. Obviously you don't want to drag this out any longer, and there is a reason why you want this done before you retire.....

So make it your pet project for the next couple of weeks to get this sorted.....is your ex doing the same thing then?
Reply With Quote
  #8 (permalink)  
Old 01-23-2014, 11:16 AM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default

She has her own reasons for wanting a divorce. She is planning on getting married again. Hopefully I can get this sorted in the next few weeks. In any case I won't be retiring until after the divorce.
Reply With Quote
  #9 (permalink)  
Old 01-23-2014, 12:36 PM
Junior Member
 
Join Date: Sep 2010
Posts: 17
moremiles is on a distinguished road
Default

"Your pension administrator may be willing to do all these calculations at little to no cost to you."
Ha! You think they would? Not a chance. I just spoke to four people there & they sound like a bunch of parrots. They will only act on a court order! I will not involve them at all as they have made clear what they will & will not do. I am going to my bank tomorrow & will talk to them about transferring money from my RSP to one for her. Maybe they can advise me.
Reply With Quote
  #10 (permalink)  
Old 01-23-2014, 01:09 PM
FWB's Avatar
FWB FWB is offline
Senior Member
 
Join Date: Dec 2013
Posts: 548
FWB is an unknown quantity at this point
Default

Quote:
I just spoke to four people there & they sound like a bunch of parrots.
Ahahahahaha....a bit of trivia for ya, did you know that there are about 372 species of Parrots? Ironically, a "bunch of parrots" as you so eloquently put it, is known as "company"
Reply With Quote
Reply

Tags
pension split


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pension split Love and Theft Financial Issues 7 03-23-2013 05:55 PM
need adviced Northvetter Divorce & Family Law 5 11-09-2011 12:13 AM
new here...pls be gentle! :) caro46 Introductions 9 08-11-2011 02:49 PM
A different pension lump sum question OtRA Financial Issues 5 03-30-2011 04:07 PM
divorce agreement then taking cpp blue eyes Financial Issues 1 06-23-2006 08:43 PM


All times are GMT -4. The time now is 04:03 PM.