If your marital status changes
Depending on the pension choice you made at retirement and/or your personal circumstances at that time, you may wish to update your beneficiary by completing a new Beneficiary Designation Form.
If you were married and elected to receive a Joint & Survivor Pension, the person you were married to at that time is the person entitled to the Survivor Pension. Therefore, should you re-marry due to the death or divorce of your spouse at retirement, the Survivor Pension benefit will not be transferred to your new spouse.
If you were not married when you applied for your pension and received your first pension payment, you are currently receiving a pension payable for your life with pension payments guaranteed for the first five years of retirement, except if you are receiving a disability pension. This option cannot be changed. If you have not received five years of pension payments, you may wish to update your beneficiary by completing and submitting the Beneficiary Designation Form.
If your spouse passes away, please notify the LPF Office so that we can update our records.
For more information please contact the LPF Office.
You are getting separated or divorced from your Spouse
If you and your spouse are getting separated or divorced, the pension you have earned in the LPF, or in any other registered pension plan, during your marriage or common-law relationship, is considered to be a part of “family property” and may be divided between the spouses.
You may be required to include the value of any pension benefits you accumulated in the LPF Pension Plan during the period of your marriage or spousal relationship in your calculation of net family property.
Although it is not mandatory to divide your pension, when you make arrangements to split your assets you may choose or need to pay a portion of your pension to your former spouse.
Please note that Marriage Breakdown Rules vary from province to province. On our website we provide the information pertaining to Ontario, which is the LPF’s province of registration.
If your court order, family arbitration award or a domestic contract such as a separation agreement was signed or executed on or before December 31, 2011 please read the section Ontario Marriage Breakdown Rules before 2012
If your court order, family arbitration award or a domestic contract such as a separation agreement was signed or executed on or after January 1, 2012 please read the section Ontario Marriage Breakdown Rules Effective January 2012
When you have a separation agreement finalized or a court order, please forward a certified copy of any such signed agreement to the LPF Office.
For more information please contact the LPF Office.
Ontario Marriage Breakdown Rules Effective January 1, 2012
If you have a court order, family arbitration award or a separation agreement signed or executed on or after January 1, 2012 these rules apply to you. The LPF and other pension plan administrators in Ontario have to follow these regulations regarding the valuation and division of pension benefits in the event of a marriage breakdown. These rules are part of the Ontario Family Law Act and the Ontario Pension Benefits Act.
You are required to use specific forms created by the Financial Services Regulatory Authority of Ontario (FSRA), to apply to the LPF for a valuation of pension entitlement, or to apply for a settlement option. You can download the required forms and instructions on how to use them directly from our website - direct links which are provided below.
The following is a brief description of the 5-step process involved and links to the applicable forms:
- Complete an Application for Family Law Value - Form 1
- If applicable, include Joint Declaration of Period of Spousal Relationship – Form 2 and Contact Person Authorization – Form 3
- Pay the required fee to the LPF of $678.00 (includes HST) for the Statement of Family Law Value (FLV) for single FLV date, or $1,356.00 if selecting two FLV dates (Appendix A of Form 1). Please note that only Certified Cheques or Money Orders payable to the LiUNA Pension Fund will be accepted.
- Include all required documentation (Certified Copies only) with your application
- Receive your Statement of Family Law Value from the LPF within 60 days
- Decide if you want to divide the pension benefit and how
- If not dividing the pension, FSRA form No Division of Family Law Value/Pension Assets – Form 7 must be sent to the LPF
- If the pension benefit is to be divided, your former spouse must complete one of the following FSRA forms as applicable:
- Application to Transfer the Family Law Value – Form 5
- Application to Divide a Retired Member’s Pension – Form 6
- In addition, you must submit a finalized court order, domestic contract (i.e. separation agreement), or arbitration award that clearly states the name of your the pension plan, the FLV date and the pension entitlement payable to your former spouse as either a percentage of the reported Family Law Value or an exact dollar figure. Under Ontario law, your former spouse cannot receive more than 50% of the benefit you earned during the relationship, as set out in the Statement of Family Law Value that the LPF sent you.
- Your Former Spouse will receive a payment from the LPF within 60 days in accordance with the transfer ratio at the time of payment.
- Your LPF Pension Benefit will be adjusted once the LPF issues a payment to your former spouse. Your pension benefit will be reduced accordingly because your former spouse has received a portion of your accrued pension as a settlement.
Before you and your former spouse make any arrangements about requesting the valuation and deciding on the division of your pension benefits, the LPF strongly recommends you to seek legal advice from a family lawyer.
Ontario Marriage Breakdown Rules before 2012
LPF members who made arrangements to divide their pension benefit with their former spouse in a court order, separation agreement or family arbitration award dated on or before December 31, 2011 are subject to the Ontario old marriage breakdown rules and cannot change those arrangements. Under these rules, a member’s former spouse cannot receive a settlement from the Plan until the member’s date of termination of employment, retirement date or the date of the member’s death.
The separation agreement/court order must fully describe how the pension will be divided at retirement, termination or death.
The maximum amount of pension benefits that can be assigned to a former spouse is 50% of the pension benefit earned during the period of the marriage or co-habitation, determined in accordance with applicable provisions of the Pension Benefit Act and the Family Law Act. Your pension will be reduced by the amount of any pension assigned to your former spouse.
In order for the LPF to administer a division of a member’s pension benefit, we must have:
- a certified copy of the marriage breakdown document, such as a court order, family arbitration award or domestic contract (e.g., a separation agreement), clearly stating the name of the pension plan, the date of separation and percentage amount assigned to the former spouse during the period of the marriage or co-habitation.
- Certified copies of proof of age documents, proof of marriage or co-habitation.
If you need to obtain an estimate of your pension benefit for marriage breakdown purpose under this rules, please contact the LPF Office.