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Pension valuation for short term marriage

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  • Pension valuation for short term marriage

    I have read through all the pension valuation posts on here but was not sure on the length of marriages of the posters and how an amount is reached when a marriage was only 2 years in duration.

    A value was received from the pension admin - a for example amount would be $1,500.00 (the increase in pension from the start to end of marriage).

    I know this will have to be looked at by an actuary but I am confused as to how they reach a "payout" number on an amount so small and that length of term of marriage. I believe this is a defined pension plan? not sure of exact term used.

    Thank you for any help you can provide. I have read many sites on this and I am still somewhat confused so came back to ask

  • #2
    $1,500.00

    How much does the actuary cost? How much would lawyer and court cost to fight for that amount?

    Curious myself.

    Comment


    • #3
      I was going to say... not sure if the $1500 was just a number the poster threw out there, or if it's the actual value of the pension for a two-year period. If so, I find myself wondering why it's even worth mentioning. By the time the lawyers crunch the numbers, whatever entitlement they'd have would be swept away in legal fees.

      Worry about a $200,000 pension.

      Comment


      • #4
        Originally posted by oink View Post
        Like you said, the lawyers must be laughing literally all the way to the bank.
        When are they not? They've got it the cat's ass. I'm in the wrong f*in field.

        My partner's ex was fighting with him over $800 she thought he had in a payroll savings plan. It's a payroll deduction. It's already accounted for in his T4, and accumulated AFTER separation. Some people just don't possess logic when they assume that legal aid means they can piss around over stupidity. To have to correspond 5 times over $800 means you just lost it to the lawyers.

        And to the poster... I don't mean to sound rude toward you. Just keep in mind that it all costs money, and it ain't cheap. Loss vs. gain...

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        • #5
          hey that amount is close to what was given for how much the pension had increased from the date of marriage to the end of marriage (so it went up by $1500 in 2 years). That's whats confusing to me. What are the actuaries valuating?

          Its about $600 to have an actuary calculate.

          I know it all costs money. I was just wondering how they calculate an amount for something that lasted only 2 years and if its actually worth spending $600 to get less. Just didn't make sense to me. Unless they are going to come up with some number like $30,000 in which case where do they get that from?

          thanks again for the help

          Comment


          • #6
            It's just a savings plan, right? So how much were the total contributions by you and your employer over the period of your marriage? Then add in maybe 4% per year (of the whole valuation amount - need to guess that) for growth (depends on the actual time period). That would give you a ballpark figure, anyway.

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            • #7
              If you are in Ontario and your plan is with an Ontario corporation, there is now a fixed formula that will be applied by your pension administrator. If you want, you can look up the guidelines. But basically, they look at the increase in worth in your pension during the time of the marriage, and divide it by 2. The "worth" of your pension involves actuarial assessments, but they are now all nailed down by statute.

              You can then either transfer the half to your stbx's RRSP or RPP, or you can agree to do a cash deal. If you do a cash deal, you should discount it somewhat (maybe 25%) to account for fact that the transfer is gross (before tax) but a cash equalization is net (after tax) so should be correspondingly less.

              Comment


              • #8
                Thanks. It. Went up 1500 in that time.

                Thanks for adcice and to look out for the cash option.

                Comment

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