Marriage/Common-Law Breakdown


If you and your spouse or common-law partner break up permanently, your partner is entitled to half the monthly pension earned from the date of marriage or common-law relationship to the date of separation. The monthly payment, including adjustments such as for a plan type, integration and cost of living, is split between you and your former partner. You will each receive your respective share as a monthly payment as well as general correspondence such as annual T4A slips and newsletters.

The following options are available to you.

  1. If you divide the pension, TRAF requires the following:

    Separation Agreement
    A copy of the Separation Agreement indicates both parties have agreed to the division of the marital assets.

    Statement of Compensation
    The Statement of Compensation is signed by both partners to indicate the former partner has been compensated for the share of the pension due between the date of separation and the date the pension is divided by TRAF.

    Designation of Beneficiary
    The Designation of Beneficiary is where each of you can name beneficiaries for your respective share of the pension.

    Bank Deposit Authorization
    The Bank Deposit Authorization is to be completed by each partner to enable TRAF to deposit the pension into your respective accounts.

  2. If both of you are receiving a monthly pension, you may choose to divide the net difference in the pension. You must each agree to this in writing
     
  3. You do not have to divide your pension when
    • Both parties have received statements from TRAF stating the value of the plan member's pension earned during the relationship, and
    • Both parties have received independent legal advice, and
    • Both parties agree to waive the division by completing a Spousal Agreement available from TRAF.

What You Should Know

All of the provisions of the original plan you selected when you retired remain in effect.

If you divide your pension,

  • Upon your death or your original partner's death, the pension will be adjusted in accordance with the original plan selected, and
  • You and your original partner can each name a new beneficiary for your respective share of the pension.

If you opt out,

  • Upon your death or your original partner's death, the pension will be adjusted in accordance with the original plan selected, and
  • You cannot change your beneficiary unless you selected Plan A or B.

Division of your pension cannot be waived by a prenuptial or cohabitation agreement.

How to Proceed

Ensure you complete the Marriage/Common-Law Breakdown Calculation Request. Once we have received the completed form, we will calculate the pension for the period of your marriage or common-law relationship, and determine the amount, if any, due to the former partner since the date of separation.