Presentation Transcript

1. Breaking up is hard to do

   Valuation & Division of Pension Assets on Breakdown of a Spousal Relationship 2014
2. Purpose of this Seminar Outline the rules for the valuation and division of pension assets upon the breakdown of a spousal relationship that came into effect on January 1, 2012 Show how to request a valuation Provide an overview of the relevant forms & fee’s
3. The rules have changed. New rules and a new process for the valuation and division of pension assets following the breakdown of a spousal relationship came into effect on Jan. 1, 2012 This family law pension valuation and division regime requires the pension plan administrator to calculate the value of the pension, provides for immediate division, and mandates the use of Superintendent of Financial Services approved forms throughout the process
4. To whom do the new rules apply? All spouses whose relationship breaks down and whose Settlement Instrument is signed on or after January 1, 2012, are subject to the new pension valuation and division rules Spouses whose Settlement Instrument was signed before January 1, 2012 are subject to the old pension valuation and division rules unless their Settlement Instrument did not deal with the pension assets
5. Financial Services Commission of Ontario (FSCO) – Family Law Forms FSCO has developed approved forms that relate to the valuation and division of pension assets on breakdown of a spousal relationship. These FSCO family law forms must be used by plan administrators and spouses when pension assets are to be valued and/or divided The FSCO website provides all of the necessary forms and answers to Frequently Asked Questions The link to FSCO is: http://www.fsco.gov.on.ca/en/pensions/Family-Law/Pages/familylawforms.aspx
6. How to apply for a Family Law Value Complete the mandatory Application for Family Law Value (FSCO Form 1) If you are/were in a common-law relationship, only the Plan Member may complete this Application Form You must provide all required documents and pay the fee in order to get your Family Law Value
7. Required Documents Proof of Plan Member’s date of birth (e.g. certified copy of a birth certificate, baptismal certificate, passport) Proof of date of birth of the spouse/former spouse of the Plan Member (e.g. certified copy of a birth certificate, baptismal certificate, passport)
8. Required Documents Proof of the starting date of your spousal relationship (married or common-law). Provide one of the following: Certified copy of your marriage certificate Joint Declaration of Period of Spousal Relationship (FSCO Family Law Form 2) Certified copy of a court order, family arbitration award or domestic contract
9. Required Documents Proof of your separation date. Provide one of the following: Joint Declaration of Period of Spousal Relationship (FSCO Family Law Form 2) Appendix A of this Application for Family Law Value (FSCO Family Law Form 1) Certified copy of a court order, family arbitration award or domestic contract
10. What is a “certified copy”? A “certified copy” is a copy of the original document that has been certified as being a true copy of the original document. Typically, people who provide certification include lawyers, notaries and Human Resource personnel
11. Contact Person AuthorizationFSCO Family Law Form 3 If you and/or your former spouse wish to authorize a lawyer or someone else to communicate with and receive information from us on your or your former spouse's behalf, we must receive a completed Contact Person Authorization (FSCO Family Law Form 3) with your application
12. Fee’s and Obligation The fee for the first valuation is $400 and $800 for any subsequent applications Our regulatory obligation is to provide the Family Law Value within 60 days of receiving a completed application
13. To divide or not to divide the Family Law Value? Once you've received your Statement of Family Law Value, consult your family lawyer and/or financial advisor for professional advice Decide if you're using your pension to settle your equalization obligation Get a court order, enter into a domestic contract or seek a family arbitration award.
14. If the decision is not to divide Use FSCO Family Law Form 7 - No Division of Family Law Value/Pension Assets to let us know that the Family Law Value will not be divided To be jointly completed by the pension plan member and his or her spouse/former spouse
15. If the decision is to divide The former spouse of the Plan Member must complete and send an Application to Transfer the Family Law Value (FSCO Family Law Form 5) to us and include the following information: A certified copy of the court order, family arbitration award or domestic contract made on or after January 1, 2012, under the Ontario Family Law Act that: (i) provides for the division of the Family Law Value; (ii) clearly specifies the amount that must be transferred to the former spouse; and, (iii) clearly specifies the Family Law Valuation Date
16. When will share of the Family Law Value be paid out? As Plan Administrator’s we have 60 days after receiving a complete application, including all required documents, to transfer share of the Family Law Value in accordance with the chosen transfer option
17. Transfer Options for the Former Spouse of the Plan Member Transfer lump sum to a locked-in retirement account (LIRA) or to a life income fund (LIF) Transfer lump sum to another pension plan. This option will only be available if the Plan Administrator of the receiving pension plan agrees to accept the transfer and administer the transferred amount in accordance with the Ontario Pension Benefits Act.
18. Re-cap of Process
19. Need to contact Pension & Benefits? E-mail askpb@yorku.ca Call 416-736-2100 extension 27572 (askpb) – the phone line is open from 9:00 am to 4:00 pm Monday to Friday. For Fridays in June, July and August the phone line closes at 3:00 pm Please have your employee ID ready when you call us. Any form or document that we may need from you can be completed, scanned and emailed to askpb@yorku.ca