Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th,...
-
Upload
rosalind-perkins -
Category
Documents
-
view
213 -
download
0
Transcript of Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th,...
![Page 1: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/1.jpg)
Pension Division and the FLA
CBA - Joint Session - Family Law and Pension & Benefits
February 7th, 2013 - Vancouver
Thomas G. Anderson, Q.C.
Anderson Pension Law Consulting
http://andersonpensionlaw.shawwebspace.ca
![Page 2: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/2.jpg)
What’s new under the FLA
Much will feel familiar Some things that stayed the same:
– FRA - division of family assets under Part 5– FLA - Part 5
– FRA - pension division rules - Part 6– FLA - Part 6
![Page 3: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/3.jpg)
Different definition of “spouse”
FRA - married spouse, s. 120.1 agreement, unjust enrichment
FLA – married spouse or 2 year marriage-like relationship– married - “spouse” for up to 2 years after divorce– marriage-like relationship - 2 years after separation
![Page 4: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/4.jpg)
Family Property Basics
FRA - crystallizes on triggering event FLA - “crystallizes”? if so, on separation
FRA - property owned before marriage can be family asset
FLA - property owned before marriage “excluded property”
![Page 5: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/5.jpg)
Portion of Benefits Subject to Division
FRA - marriage to triggering event FLA - date marriage-like relationship commenced
to date of separation
FRA - if no dates: default rules apply FLA - if no dates: administrator can't divide the
benefits
![Page 6: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/6.jpg)
FRA - FLA - concepts retained
Local Plan Limited Member DC account DB provision Hybrid plan
![Page 7: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/7.jpg)
Information from administrator
FRA - Form 1 FLA - Form P1
provide requested information admin must give 30 day’s advance notice mail, e-mail, fax Member’s personal information can’t be disclosed
![Page 8: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/8.jpg)
DC Account
Form P3, agreement/order, admin. fee transfer from plan to prescribed pension vehicle
– e.g., RRSP
admin. can consent to keep in plan– if so: Form P2 - limited member
![Page 9: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/9.jpg)
DC proportionate share formula
FRA 1/2 x [A-B]
FLA Reg. 20:– transfer amount =
– 1/2 (account balance - pre-relationship contributions)
same formula
![Page 10: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/10.jpg)
DB proportionate share formula
FRA 1/2 x A/B FLA Reg. 17:
– proportionate share =– 1/2 x – (pensionable service during entitlement period– divided by– total pensionable service)
same formula
![Page 11: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/11.jpg)
Options for dividing Unmatured DB benefits
s. 115 spouse becomes limited member when member eligible for pension
commencement LM can choose between– 1. lump sum transfer– 2. separate pension
![Page 12: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/12.jpg)
FRA Rule?
separate pension available when member's pension commenced
![Page 13: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/13.jpg)
Valuing spouse's share
- separate pension determined by– assuming member’s pension commences at average
age of retirement for plan– converted into separate pension for LM based on LM's
life expectancy
![Page 14: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/14.jpg)
Death of spouse before benefits divided?
FRA - spouse's share transferred to estate
FLA - same (s. 124(4))
![Page 15: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/15.jpg)
Death of member before benefits divided?
FRA - spouse received share of preretirement survivor benefits
FLA - spouse receives share of benefits determined day before death of member– Survivor benefits based on member’s share– payable to Member's spouse, beneficiary, estate
![Page 16: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/16.jpg)
Transition rules
Agreement made under FRA
FLA in force– - benefits not divided– - member dies
What rules apply?
![Page 17: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/17.jpg)
Transition rules (cont.)
if addressed in the agreement?– that determines spouse's entitlement
if agreement silent?– FLA rules apply (s. 253(2))
if administrator consulted on this issue?– directions received apply
![Page 18: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/18.jpg)
Matured pension
Under the FRA– spouse becomes LM– income stream divided between parties– death of spouse - all to member– death of member - determined by survivor benefit
election
FLA - same
![Page 19: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/19.jpg)
Matured pension - DC account
withdrawals/ variable pension FLA - if funds still in DC account?
– still apply the rules that apply under s. 114
![Page 20: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/20.jpg)
Supplemental Plans
FRA – extraprovincial plan rules– benefit split
FLA – separate pension when member's pension commences– other options available with plan consent
![Page 21: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/21.jpg)
IPP
FLA - separate pension when member's pension commences
other options available with plan consent
![Page 22: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/22.jpg)
Administrative Liability
no obligation to divide until administrator has– forms – agreement/order– admin. fee– other documents reasonable required
incomplete application? – notice obligation discharges liability.
![Page 23: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/23.jpg)
PBSA & Pension Division
Spousal rights under PBSA– survivor benefits
PBSA rules after pension division
FLA – expanded rules about what constitutes division of
pension - s. 145
![Page 24: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/24.jpg)
Drafting Agreements and Court Orders dividing Pension Benefits
Must specify dates common clauses already part of legislation For example
– tax indemnity, trust clauses, liberty to apply
Family Law Agreements - Annotated Precedents
website Q&A
![Page 25: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/25.jpg)
Forms
Form P1, “Claim and Request for Information and Notice”– Same as old Form 1– Can use to authorize representative
Form P2, “Request for Designation as Limited Member” – Same as old Form 1– used any time division is deferred or ongoing
![Page 26: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/26.jpg)
Forms (cont.)
Form P3, “Request for Transfer from Defined Contribution Account”– same as old Form 3– transfer funds to RRSP
Form P4, “Request by Limited Member for Transfer or Separate Pension”– same as old Form 4– elect between lump sum transfer & separate pension
![Page 27: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/27.jpg)
Forms (cont.)
Form P5, “Waiver of Survivor Benefits after Pension Commencement”– designed not to be used
Form P6, “Administrator/Annuity Issuer Response”– used by admin to give notice to member & spouse
![Page 28: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/28.jpg)
Forms (cont.)
Form P7 - “Withdrawal of Notice/Waiver of Claim”– if share of benefits satisfied in some other way
Form P8, “Change of Information” – important: former spouse must keep contact info up to
date.
![Page 29: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/29.jpg)
Forms (cont.)
Form P9, “Agreement to Have Benefits Divided Under Part 6”– DIY
![Page 30: Pension Division and the FLA CBA - Joint Session - Family Law and Pension & Benefits February 7th, 2013 - Vancouver Thomas G. Anderson, Q.C. Anderson Pension.](https://reader034.fdocuments.in/reader034/viewer/2022051820/56649ec15503460f94bcdb30/html5/thumbnails/30.jpg)
QUESTIONS?