What are the member spouse’s options for the split of the pension? Is a lump sum amount payable?
The legislation that applies to the pension plan will dictate the methods that can be used to divide the pension. Some pension plans fall under provincial legislation (The Pension Benefits Act of Ontario or PBA, Quebec Supplemental Pension Plan Act), some under federal legislations (Pension Benefits Standards Act or PBSA) while others have their own Act, like the Federal Public Service, the Armed Forces and the RCMP. The Ontario Pension Benefits Act does not provide for a transfer of a lump sum amount out of the pension plan while the member is still active. Should a situation arise where the member’s spouse does not possess sufficient assets to equalize the pension, thus making an immediate equalization unfeasible, parties may enter into an “if-and-when” agreement whereby the pension payments could then be divided on a monthly basis at retirement. Some plans (ex: OPSEU) have started to offer de-linked pensions. The Quebec Supplemental Pension Plan Act provides for a transfer of a lump
