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  • Division of Pensions

    My wife wants to file for divorce and claim half of the value in my pension for the time (2.5 years) that we were married. She claims I can't make a counterclaim against her pension because she is already collecting it. She served in the military and received a medical release and a reduced pension.

    The basis of her claim is that in her first marriage (which ended in divorce), she tried to claim half of her then-husband's pension but was told she could not because he was already collecting it. Her ex-spouse was in exactly the same situation she was in the sense that he served in the military for a time and was transferred to another federal employer, and began receiving a partial disability pension based on the injury he incurred while in the military.

    I've read the Pension Benefits Division Act, and it appears to be silent on the matter.

    However, the Public Works and Government Services (PWGSC) website has this to say about division of pensions:

    "11. Are the plan member's pension benefits divided if the member is receiving a pension at the time of division? Yes. The member's pension benefits are subject to division regardless of whether or not the member is receiving monthly pension benefits. The maximum transferable amount is based on the value of future pension payments only; payments made to the member prior to division are not included in the value. After division, the plan member's monthly pension benefits will be reduced to reflect the division. In no case, however, are the member's pension benefits for the period subject to division reduced more than 50% of their value before division."

    (italics mine)

    Does anybody know how the courts treat situations such as these? I presume the information contained in the PWGSC site is fundamentally accurate, although I could imagine situations where case law shows a different perspective.

  • #2
    ZipZap, you are well informed! I am currently a full time member of the CF planning on retiring within the next three years. I have friends and acquaintances within the DMPAP (Director Military Pay and Accounts Processing) world.

    Although the PBDA does not specifically stipulate the division of pension benefits for retired members, the pension is still a marital asset and subject to the rules and regulations of marital property on divorce.

    As for the Ontario courts, please see the link(s) below where public service members had their pensions divided after they retired:

    CanLII - 2010 ONSC 3430 (CanLII)

    http://www.canlii.ca/eliisa/highlight.do?text=%2B%22pension+benefits+division+ act%22+%2Bretired&language=en&searchTitle=Ontario+-+Superior+Court+of+Justice&path=/en/on/onsc/doc/2002/2002canlii53322/2002canlii53322.html

    There seems to be other case law in the Superior Court of Ontario as well. I hope this helps, although it is bad news.

    Ken

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    • #3
      Originally posted by Kenny View Post
      ZipZap, you are well informed! I am currently a full time member of the CF planning on retiring within the next three years. I have friends and acquaintances within the DMPAP (Director Military Pay and Accounts Processing) world.

      <case citations snipped>

      There seems to be other case law in the Superior Court of Ontario as well. I hope this helps, although it is bad news.

      Ken
      Ken, thanks for the info. I agree, it does appear to be bad news. However, one issue that I have to grapple with is whether it would make sense for me to make a counterclaim against her pension, which is $1054.00 per month. Any amount that I might get from her pension to offset what comes out of mine might be rather small - and possibly not worth the trouble of pursuing.

      If I can avoid having to take the matter to a judge, I will. Ex-wife has said that her only concern is the pension, and that she does not want support payments or an equalization payment. By the same token, I don't want to give away the farm, either.

      On the other hand, she is not likely to cooperate with any request that I might make for her to go and get a valuation for her own pension, and said lack of cooperation would inevitably force me to go before a judge to compel her to provide financial disclosure...

      Comment

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