Federal Gov Pension contributions

[fingerscrossed]

Hi,

For a government of Canada pension, there is the pension value as an asset, but what about the contributions the employer is paying into the pension every month? Does this count as income the same way corporate dividends do, and if so how do you determine the value of the contribution?

For that matter what about the benefits package? What's it's value as income?

Thanks!

[Teenwolf]

I don't believe the government's contribution counts as income. I'm contributing to a government pension and I really have no idea how much the government contributes each year; none of my pay statements or even my buyback that I did a few years ago, specifically states what the government is paying towards it.

I could be wrong, but an ex spouse can only ask the court to award part of your pension benefit for the years that s/he was married or in a CL relationship with you. If s/he can convince the court that s/he somehow contributed to your pension during your relationship, then the court will award him/her part of your pension benefit for the years that you were together (i.e. you were together for 10 years, your pension benefit is 2% per year, so 20% of your pension would be partially awarded to the ex). However, the ex would not get this until you were eligible to collect a pension.

[ddol1]

Teen wolf you are confusing spousal support and pensions which is an asset subject to equalization like any other asset owned by the couple. You did have the principle that the pension as a divisble asset is only for the years they were deamed to be together. (believe this counts for common law too??)

As far as the government CPP age 65 pension which I believe the OP is refering...... There is a provision for the splitting of credits earned during the marriage and will be done when either spouse following the divorce fills in the paper work requesting the government to do the calculation - once they recalculate and you do not like their answer it is too late, the changes will stick for both of you.

If there is a chance that the OP is an employee of the Canadian government then this will be like any other company - IF the pension is vested the employer portion will be included but to figure out pension values it has nothing to with the dollars you put in every pay - this is why the pension must be properly - actuarily valued either by the employer or a third party for a fee (heard it is $400 - $600 for the average pension)

[fingerscrossed]

Its a federal government employee pension plan. Not CPP or anything.

I know the pension has a value as and asset but what about the monthly employer contributed amount ? 65% of the pension is contributed by the employer.

Does the employer contributed amount count as income? Isn't it like getting dividends or stocks?

[Moolight]

Pension unless the person is currently receiving their pension, it is an asset to consider for equalization purpose only. You can not consider contribution as income nor the benefit package.


If you are in Ontario, since this is one federal pension, they do not provide the actuarial calculation according to the Ontario law so you will need to get an Actuary to do it.

Pension Benefit Division Act (PBDA) - Publications - Public Service Pension Plan - PWGSC

http://www.tpsgc-pwgsc.gc.ca/pension.../info-eng.html

[Moolight]

Its a federal government employee pension plan. Not CPP or anything.

I know the pension has a value as and asset but what about the monthly employer contributed amount ? 65% of the pension is contributed by the employer.

Does the employer contributed amount count as income? Isn't it like getting dividends or stocks?

The pension value will contain both contributions and it index. There is nothing to consider as income.

[fingerscrossed]

Thanks. Seems a bit one-sided as that's money that's going into a pension on their behalf. Not much difference between that and getting a company car. You don't have to use your money.
Any idea if the Ontario calculation is higher than the reported numbers from the fund manager?

Pension unless the person is currently receiving their pension, it is an asset to consider for equalization purpose only. You can not consider contribution as income nor the benefit package.


If you are in Ontario, since this is one federal pension, they do not provide the actuarial calculation according to the Ontario law so you will need to get an Actuary to do it.

Pension Benefit Division Act (PBDA) - Publications - Public Service Pension Plan - PWGSC

Division of Pension Benefits Package - Public Service Pension Plan - PWGSC

[Moolight]

The Ontario calculation provides you with only one value instead of possibly 3 base on retirement age( 55,60,65).

Have gone through it as my process started prior the law so I got it valuated twice and it end up being higher.

The main thing is that this eliminates any argument and it includes all index that will accumulate till retirement. Better that actual value of stock or RRSP. Note that what forms the value of the pension includes both employee and employer contributions plus the index base on the last 5 best salary years.

[fingerscrossed]

So, I read that as a federal government of Canada pension MUST be evaluated by an actuary, and if your in Ontario the actuary should be using the new prescribed formula?

The Ontario calculation provides you with only one value instead of possibly 3 base on retirement age( 55,60,65).

Have gone through it as my process started prior the law so I got it valuated twice and it end up being higher.

The main thing is that this eliminates any argument and it includes all index that will accumulate till retirement. Better that actual value of stock or RRSP. Note that what forms the value of the pension includes both employee and employer contributions plus the index base on the last 5 best salary years.

[Moolight]

First you apply for an estimate division to the pension administrator (you can also do it as a spouse), the form is on the web. ( no cost for that)

You bring then that info to an actuary who will calcualte for you the value for your NFP and usually also indicate the tax rate. ($ 300 to $600)

You ask your spouse to do it, she will absord the fee or you can get it done as absord the fee.

If you are in Ontario, because of the new legislation that has a specific formula, you have to get it done by an actuary.

If it was an Ontario pension, the pension administrator would do it for you at no cost but the federal pension does not falls under the Ontario jurisdiction. This is why you need to consult an actuary.