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  • Pension Calculation Payout

    Hi Everyone;

    As I'm going through the divorce process, I have to pay out part of my government pension.

    I'd really like to just pay out her portion of the pension and not loose any money from it.

    We have/had been married 15 years to the sep. date.

    Is there and easy way to calculate the amount I would have to pay out? For example, as simple as saying 300k in the pension, therefore her half is 150k (which I couldn't afford to give her).

    I'm in Ontario where I know the law changed in 2012.

    Thanks for any advice. I find I'm swirling a bit with all this.

  • #2
    You can contact your Pension administrator for the information.

    Are you talking about Ontario govt or Fed gov pension. The difference is that any Ontario pension will give you the division estimate according to the new law but the Fed will not. You may be obligate to take their estimate and consult with an actuary.

    You will find info here.

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

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    • #3
      O.k thanks,

      It's the Ontario Teacher's Pension Plan. I did contact them once to get an idea. The person I spoke to, stated it could fluctuate by +/- 25%

      Thanks Again,

      Comment


      • #4
        You ask for the estimate as of the date of separation and then use that to put in your financial disclosure.

        Once you have hers and yours, equalization calculation can be made. if you own her anything, you have the choice of how you pay her.

        There is nothing forcing to take money out your pension as long you perform the equalization and pay her the equivalent of what you own her.

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        • #5
          ^ Good advice.

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          • #6
            If you are in the Ottawa region, most people seem to use Home - GML Actuarial Services - Actuaries in Ottawa Gatineau

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            • #7
              There is no easy way. Be prepared for sticker shock with 15 years. The artificially low interest rates are going to balloon the net present value. My 2.8y municipal pension was valued at $65K. I almost fell on the floor. That's what happens at 1.25% for the first 10 years used in the calculation.

              It's valued by an actuary at your pension plan. Using interest rates, birth death, etc etc....

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              • #8
                The teachers pension board will evaluate your pension and then you should take it to an actuary to determine the value. The actuary looks at other factors and will determine your tax rate etc. The Ont teachers pension plan will explain all your options. You can send them the required info and do it yourself. Saves money rather than have your lawyer do it.

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                • #9
                  I'm in the Oakville area so, if anyone could recommend an 'actuary' around here that is affordable that would be great. I don't want to make a mistake.

                  I'll contact the teachers pension board for some rough numbers.

                  To: keep moving forward, was your payout valued at 65k, I.e. you owed your spouse that amount?

                  Re. Lawyers....I like my guy buy man oh man I don't want them evaluating. Way to expensive.

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                  • #10
                    Get an official estimate from the plan admin, not just rough numbers, this is required before even meeting the Actuary. Otherwise you will just pay for nothing or even the actuary will charge you to obtain these in your behalf.

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                    • #11
                      North of 40 - That was 65K total. So I have to give her half. But it went into the Net Family Property Statement. It basically reduced her payout to me since she is buying me out of the house net of mortgage.

                      Not sure what the deal is with getting an actuary on your own. I filled out the government paperwork, sent it in - along with $600 ! - and the plan administrator sent back the number. To her lawyer as well.

                      Didn't get another party to value it. Not sure how another party would since the plan administrator is responsible for these things. Defined benefit pensions that is.

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                      • #12
                        North of 40 - because your plan is an Ontario plan, the plan administrators can provide the valuation in accordance with the new Ontario laws (at a cost, of course) There should be no further need for an actuary to appraise it for equalization purposes.

                        I am a Federal public servant and my pension had to go to an appraiser. I used Dilkes Jeffery out of London. Cost after HST was approx. $1,100.

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                        • #13
                          Ok. Thanks for all the info.

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                          • #14
                            Fill out the forms and they will give you a "gross" number and then the actuary will determine your tax rate etc. (It will take 6 - 8 weeks to get the report) I had an evaluation done prior to the new law (with actuary 1) and then after the new law (actuary 2)---as the ex and my lawyer agreed to the first number and changed their minds. They felt they would get more after the new law.

                            $600 prior to the new law for actuarial report

                            The teachers pension will give you the calculation---"gross" amount

                            The second actuarial bill was much much much less--although he made a mistake and i paid the lawyer and legal clerk to discuss the error . Oh---actuary 2 looked at actuary 1's report---there was an error there as well.

                            YOu do not need anyone in your area---it is all online if you want to work it that way. Send the stuff to the actuary that you receive from teacher's---and he/she will do the report and send it to you. Your lawyer may have the name of someone he uses.

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                            • #15
                              Note---no cost to do the report from Teacher's--cost of actuary not that bad. My ex gets half of my 20 years of pension---it is much much much more than $65,000

                              It can be included as part of the equalization process.

                              I am waiting for ex's lawyer to disagree. She wants a low tax rate so he gets more of my pension. Wait til they go after your gratuity as well.

                              Comment

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