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The Pension Benefits Division Act (PBDA)
INFORMATION KIT
This Information Kit is designed to:
1. |
Help you understand the Pension
Benefits Division Act and its process; and |
2. |
Permit you to request an estimate
of pension benefits division or to apply for a formal division of pension
benefits. |
Here is what you should find in this kit: |
1. |
An Information Guide on the Pension Benefits Division
Act which will give you:
- |
a summary of the process; |
- |
the eligibility requirements;
and |
- |
an explanation of the three
major steps of the process.
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2. |
A copy of the Request for Pension Benefits Division
Information (PWGSC-TPSGC 2488)
and the Statutory Declaration (PWGSC-TPSGC 2483)
forms. These are the forms you use if you want information on the member's
pension benefits before you make a formal application. Detailed instructions
are also included. |
3. |
A copy of the Application for Division of a Public
Service Superannuation Act Pension (PWGSC-TPSGC 2486)
and the Statutory Declaration (PWGSC-TPSGC 2484)
forms. These are the forms you use if you want to apply for a division of
pension benefits. Detailed instructions are also included. |
Distribution:
All requests for pension benefits information and applications for division
of a
Public Service Superannuation Act pension are to be sent directly to
the following address:
Superannuation, Pension Transition and Client Services Sector
Public Works and Government Services Canada
P.O. Box 5010
Shediac, NB
E4P 9B4
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TABLE OF CONTENTS
- Information Guide
- Process Overview
- Request for Estimate
- Application for Division
- Division and Transfer
- Forms :
- Instructions on how to obtain information on
the PBDA
- Request for Pension Benefits
Division Information, PWGSC-TPSGC 2488, (.PDF Format, 20k)
- Statutory Declaration, PWGSC-TPSGC 2483,
(.PDF Format, 19k)
- Instructions on how to apply for PBDA
- Application for Division of a
Public Service Superannuation Act Pension, PWGSC-TPSGC 2486,
(.PDF Format, 69k)
- Statutory Declaration, PWGSC-TPSGC 2484
,
(.PDF Format, 96k)
INFORMATION GUIDE
This guide on the pension benefits division process is intended for members
under the Public Service Superannuation Act (PSSA) and their spouses or former
spouses.
Use of the masculine in this text is generic and applies to both men and women.
PROCESS OVERVIEW
The Pension Benefits Division Act (PBDA) is an Act of Parliament that permits
the division of pension benefits between a member of a federal public sector
pension plan and his spouse or former spouse, when a marriage or common-law
relationship breaks down. The pension benefits subject to division are those
that were acquired during the period of marriage or cohabitation, except where
a different period is specified in a court order.
The PBDA applies to federal public sector pension plans provided under the
following acts:
Public Service Superannuation Act (PSSA), Royal Canadian Mounted Police Superannuation
Act, Royal Canadian Mounted Police Pension Continuation Act, Canadian Forces Superannuation
Act, Defence Services Pension Continuation Act, Diplomatic Service (Special) Superannuation
Act, Lieutenant Governors Superannuation Act, Governor General's Act, Members
of Parliament Retiring Allowances Act, Special Retirement Arrangements Act.
1. |
What is involved in the
pension benefits division process?
The Minister in charge of administering the PSSA has set up a formal
application process for the division of pension benefits for PSSA plan
members. Once eligible applicants have submitted all the necessary data,
a computer system performs complex calculations to arrive at the division
amount.
To be able to calculate this amount, we need specific information about
the member's service record and the period subject to division. In addition,
we need specific facts about both parties involved in the division. These
facts help us determine the correct identity of the parties involved.
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2. |
Who is eligible for a division
of pension benefits?
1. |
If the application is based on a spousal agreement,
either spouse may apply after the couple has been separated for at
least one year. If the application is based on a court order pertaining
to divorce, annulment or separation, the one-year separation requirement
does not apply. |
2. |
In the case of a common-law couple, an application may be made only
if the relationship lasted a minimum of one year. |
In either case, they must have a court order, or written spousal agreement
signed by both spouses, that provides for the division
of the member's pension benefits.
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3. |
What are the steps to obtain
a division of pension benefits?
There are three separate steps in the pension benefits division process:
1. |
Request for Information
on Pension Benefits Division: If you want an estimate of
the division amount before you apply for a division, you must fill
out and send the form entitled "Request for Pension Benefits
Division Information", along with other required documents. You
get information on the approximate allowable amount of the division
and an explanation on what went into the calculations. This step is
optional. |
2. |
Application for Pension
Benefits Division: If you want to make an application, you
must fill out and send the form entitled "Application for Division
of a Public Service Superannuation Act Pension", along with
your court order or written spousal agreement, and other required
documents. The application must be approved and the member has the
opportunity to object to the division. |
3. |
Division of Pension
Benefits: Once the division is approved, the amount of benefits
allowable for the period subject to division is transferred into the
applicant's chosen registered retirement savings account(s). In some
cases a portion of the payment may be paid directly to the recipient
and taxed. (Refer to question 2 under "Division and Transfer",
for additional information.) The member's pension benefits are then
adjusted accordingly. |
These steps are described in further detail in other sections of this
guide.
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4. |
Where can I get advice on
this process?
All information about the pension division estimate and application processes
is available from the PBDA Information Kit or by contacting the Superannuation,
Pension Transition and Client Services Sector at the following address
and toll free number:
Superannuation, Pension Transition and Client Services Sector
Public Works and Government Services Canada
P.O. Box 5010
Shediac, NB
E4P 9B4
Toll free: 1 800 883-1411
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For advice or guidance on issues
related to family law or for investment counselling, you may wish to seek
the assistance of a legal or financial expert. |
REQUEST FOR ESTIMATE
If you want an estimate of the division amount before you apply for a division
of pension benefits, you must submit a formal request, called "Request
for Pension Benefits Division Information". This step is optional.
1. |
Can I receive information
on the pension benefits division value if I am not yet separated or divorced?
Yes, as long as you make a request for the information in writing,
and the request contains the information required. For members under the
PSSA, you must fill out specific forms, as described below.
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2. |
If I do not request pension
benefits information before submitting an application for division, when
will I know how much money is involved?
You will be notified after the pension benefits have been divided and
transferred into a registered retirement vehicle. If you wish an estimate
of the amount involved before the division is approved, you must formally
request information on pension benefits before you apply for a division.
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3. |
What documents or material
must I send to request an estimate of the amount of division?
You must fill out the form entitled "Request for Pension Benefits
Division Information" (PWGSC-TPSGC 2488).
The member's name is essential. Closely follow the detailed
instructions provided with the form.
In order to calculate the estimate, we need the period of time you have
lived together.
1. |
If you have a court order
or a spousal agreement that:
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provides for the division
of pension benefits; |
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establishes the dates
of the period of cohabitation; and |
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establishes the dates
for interruptions in the period of cohabitation (only
if there have been any interruptions); then, |
you must attach a certified true copy of that document with your
request form.
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2. |
If you do not have a court
order or a spousal agreement, or if that document does not contain
all the required information, you must complete the Statutory Declaration
entitled "in the matter of Provision of Pension Benefits Information"
(PWGSC-TPSGC 2483),
and have your signature witnessed by an authorized person. |
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4. |
If I request information
on pension benefits, what kind of information will I receive?
You will receive a Pension Benefits Report. It contains an estimate
of the maximum amount allowable for division, based on the value of the
member's pension benefits acquired during a period of marriage or common-law
relationship. You will also receive a general explanation on how to interpret
the report ADM 270E.
If the estimate is requested by a contributor, an estimate of the resulting
reduced pension will also be provided.
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5. |
How accurate is the estimate
I would receive?
The amount quoted is the maximum amount that could be transferred calculated
on the date the report is prepared. The estimate is based upon the information
that you provided on the request form and the information readily available
in our own records. The maximum transferable amount can change
significantly with changes from month to month in interest assumptions
or if the member's employment status in the public service changes.
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6. |
What is the process if both
parties are PSSA members?
Each member is entitled to request an estimate through the request for
information process.
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APPLICATION FOR DIVISION
1. |
What is an application for
division?
It is the process by which, as the member, spouse or former spouse, you
can formally request a division of the pension benefits acquired by the
member during the period you lived together.
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2. |
Who is eligible for a division
of pension benefits?
Eligible applicants are:
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spouses who have been living
separate and apart for at least one year (except if the application
is based on a court order pertaining to divorce, annulment or separation,
in which case the couple may be separated for less than one year);
and |
- |
common-law spouses who have
cohabitated for at least one year and, except as noted above, who
have been living separate and apart for at least one year. |
In either case, there must be a court order or written spousal agreement
signed by both spouses providing for the division of a member's pension
benefits between the member and the spouse or former spouse.
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3. |
Is the division carried
out automatically if we are divorced or separated?
No. You must submit a formal application for division
of pension benefits. Also, a division can be done only
if you have a court order or written spousal agreement that provides for
a division of the member's pension benefits.
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4. |
When can an application
for division be submitted?
As long as you have a court order or written spousal agreement, you can
apply for a division of pension benefits at any time, subject to a minimum
one-year separation, if applicable (see question 2 above).
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5. |
What documents or information
must I send to apply for a division of pension benefits?
You must fill out the form entitled "Application for Division of
a
Public Service Superannuation Act Pension" (PWGSC-TPSGC 2486).
Closely follow the detailed instructions provided with the form.
You must attach a certified true copy of the court order
or written spousal agreement that provides for division of pension benefits.
The copy must be certified by a court official, a lawyer, a notary public
or a commissioner of oaths..
If your court order or spousal agreement does not:
- |
establish the dates of the
period of cohabitation; and |
- |
establish the dates for interruptions
in the period of cohabitation (if there have been any interruptions);
then, |
You must complete and sign the Statutory Declaration entitled "in
the Matter of an Application for Division of Pension Benefits under the
Pension Benefits Division Act " (PWGSC-TPSGC 2484),
and have your signature witnessed by an authorized person. The Statutory
Declaration outlines the periods of cohabitation (and any applicable interruptions),
which are necessary to calculate the division amount.
There are also other documents that you may be requested to provide during
the application process.
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6. |
What if I do not have a
court order or written spousal agreement?
Without a court order or written spousal agreement directing the division
of pension, there can be no division.
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7. |
What if the court order
or written spousal agreement was drawn up before this legislation came into
effect?
You can still apply for a division, as long as the court order or written
spousal agreement provides for the division of the member's pension benefits.
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8. |
How will my spouse or former
spouse know that I submitted an application for division?
When an application for division has been received, a notice of the application
for division and a copy of the court order or written spousal agreement
that accompanied the application will be sent to the other party involved.
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9. |
As the other party, what
recourse do I have if I disagree with the division or its terms?
You have up to 90 days after the date on the notice of application for
division to file a notice of objection with the organization responsible
for the pension plan.
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10. |
On what grounds can an objection
be based?
There are three grounds for objection:
1. |
The court order or written
spousal agreement has been changed or has no force or effect; |
2. |
The terms of the court order
or written spousal agreement have been or are being satisfied by other
means; or |
3. |
Proceedings are under way
to appeal or review the court order or to challenge the terms of the
written spousal agreement. |
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11. |
If an objection is submitted,
what happens to my application?
The application is put on hold until the objection is resolved.
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12. |
Will the division be refused
if the other party is able to prove grounds for objection exist?
Yes, the application for division will be refused unless or until there
is a new court order or agreement that allows for the division to proceed.
The application for division can also be refused if, as a result of a
dispute between the parties about the dates of cohabitation, the administration
cannot determine the period subject to division, or if it is determined
that proceeding with the division would be unjust.
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13. |
What happens if there is
no objection to the application?
Once the objection period is over, the division will be approved and
processed.
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DIVISION AND TRANSFER
1. |
What benefits are subject to a division?
The pension benefits subject to division are those under a federal public
sector pension plan that a plan member has acquired during the period
in which the spouses lived together during a marriage or common-law relationship.
"Pension Benefits" include any annuity, annual allowance, transfer
value or return of contributions, but do not include surviving spouse
allowances and children's allowances.
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2. |
As the member's spouse or former spouse,
what type of benefit do I receive if the division is approved?
If the division is approved, the spouse's (or former spouse's) share
is transferred as a lump sum amount directly to a retirement
savings vehicle chosen by the spouse or former spouse.
You can choose a plan or fund administered in accordance with the lock-in
provisions of the federal
Pension Benefits Standards Act (PBSA), or have the funds transferred
to another registered pension plan or to a life insurance company for the
purchase of an immediate or deferred life annuity.
In some cases, a portion of the spouse's (or former spouse's) share may
be payable from a Retirement Compensation Arrangement (RCA). An RCA provides
for benefits similar to the PSSA that cannot be paid under a registered
pension plan. The portion of the division payment in respect of RCA benefits
is paid directly to the recipient and taxed accordingly.
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3. |
Can I separate the transfer amount into
several accounts?
Yes, as long as the accounts are all registered retirement vehicles.
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4. |
What type of registered retirement vehicles
are acceptable?
If the member has less than two years of service, the amount can either
be locked-in or not. If the member has more than two years service, the
lump sum amount must be locked-in. Your financial institution is responsible
for certifying that the funds will be administered in accordance with
the lock-in provisions of the federal Pension Benefits Standards Act
(PBSA), and will be able to provide you with information regarding acceptable
transfer vehicles.
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5. |
Can I use the division amount to increase
my own pension plan?
If you are currently contributing under the Public Service Superannuation
Act, you can use the amount as contributions for payment towards an ongoing,
valid election. If you cannot buy back elective service, you must have
the amount transferred into a retirement vehicle. If you are not a federal
government employee, you can use the lump sum to increase your pension
plan only if it so permits. Otherwise, you must have the division amount
transferred into a registered retirement vehicle.
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6. |
Is the transferred division amount taxable?
Since the amount except for any portion payable from an RCA is transferred
into a locked-in retirement savings vehicle, taxes do not apply until
you start receiving periodic benefits (i.e. monthly payments). If there
is a portion payable from RCA benefits (refer to question 2), the amount
will be paid directly to the recipient, and is subject to a withholding
of tax at source as it is taxable income for the year in which it is paid.
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7. |
Does elective service already bought
back count in the division of pension benefits?
Yes, but only if payments for elective service were made during the period
subject to division. This also applies for leave without pay repayments.
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8. |
How is this lump sum determined?
Depending on the terms of the court order or written spousal agreement,
the lump sum amount can equal up to 50% of the value of the member's pension
benefits acquired during the period subject to division. This value will
be the actuarial present value of the plan member's pension benefits determined
by generally accepted actuarial principles.
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9. |
What does "generally accepted actuarial
principles" mean?
Calculations based on generally accepted actuarial principles involve
converting assumed future pension payments into one lump sum amount, estimated
on a specified date, using actuarial assumptions about future interest
rates and about the plan member's life expectancy and retirement date.
The assumptions that will be used for the PBDA are consistent with the
recommendations of the Canadian Institute of Actuaries for the computation
of transfer values from registered pension plans.
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10. |
Will the division always be 50% of the
plan member's pension benefits?
Not necessarily. If the court order or written spousal agreement provides
for the transfer of a smaller lump sum amount, this smaller amount, plus
interest if applicable, will be transferred to a retirement savings vehicle
chosen by the spouse or former spouse.
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11. |
Are the plan member's pension benefits
divided if the member is receiving a pension at the time of division?
Yes. The member's pension benefits are subject to division regardless
of whether or not the member is receiving monthly pension benefits. The
maximum transferable amount is based on the value of future pension payments
only; payments made to the member prior to division are not included in
the value. After division, the plan member's monthly pension benefits
will be reduced to reflect the division.
In no case, however, are the member's pension benefits for the period
subject to division reduced more than 50% of their value before division.
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12. |
May I choose to receive a pension rather
than a lump sum transfer?
Not directly. The PBDA provides only for the transfer of a lump sum amount
from the pension fund to a locked-in retirement savings vehicle. You will
receive a form of pension from the retirement savings vehicle when you
convert the retirement savings to periodic payments.
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13. |
What if the member is disabled and receiving
an annuity for medical reasons at the time of division?
The fact that the member is disabled and receiving an annuity for medical
reasons has no effect on the way the division amount is calculated. Both
the division payment and the reduction to the member's benefits are based
on the pension entitlement that would have been payable if the member
had not been disabled.
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14. |
After a division, am I still eligible
for spousal survivor benefits?
If you have received a lump sum amount for the years of your marriage
or common-law relationship, you cannot receive a survivor benefit for
the same period.
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15. |
How long does this process take and
when can I expect the transfer to occur?
After a notification of application for division has been sent to both
parties, the PBDA requires a 90-day waiting period for the objection process.
If no objection is received, it will be processed. The transfer will occur
as soon as possible after that.
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16. |
What happens if my spouse or former
spouse and I reach a settlement after the application for division has been
submitted?
An application may be withdrawn by the applicant at any time up until
the amount is transferred to the spouse's or former spouse's registered
retirement vehicle.
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Instructions on how to complete the:
REQUEST FOR
PENSION BENEFITS DIVISION INFORMATION FORM
With respect to a Public Service Superannuation Act Pension
in accordance with the Pension Benefits Division Act
(PWGSC-TPSGC 2488)
Please fill out carefully. Incomplete forms will be returned.
1. |
Print your surname (last name) and
given name(s). |
2. |
Place an "X" in the box
that describes in what capacity you are applying (e.g. the plan member,
the spouse or former spouse). |
Section B -
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ADDRESS TO WHICH PENSION
BENEFITS DIVISION INFORMATION IS TO BE SENT |
1. |
Print the address where you wish
to receive the pension benefits information. |
1. |
Print the member's surname, given
name(s) and date of birth. |
2. |
Print the department, branch and
location of the member's current or most recent public service employer
(e.g. Transport Canada, Finance Branch, Montréal). |
3. |
Write the member's identification
number (Personal Record Identifier, social insurance number or superannuation
number) in the Member's Identification Number box (optional for the member's
spouse or former spouse). |
4. |
Write the member's date of retirement
(if applicable). |
Section D -
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CONFIRMATION OF BENEFICIARY
STATUS FOR SUPPLEMENTARY DEATH BENEFIT |
If you have a court order or spousal
agreement that stipulates that you are to be named the member's beneficiary
or that you are entitled to this confirmation, sign and date Section
D. You must attach a certified true copy of that court order or
spousal agreement. |
Section E - |
SUPPORTING DOCUMENTS |
Place an "X" beside the documents you are including
with your Request for Pension Benefits Division Information. You must fill
out and attach the appropriate Statutory Declaration. Please consult the
PBDA Information Guide for more details. |
Section F -
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APPLICANT'S SIGNATURE |
Carefully read the certification, then sign and date the request
form. |
Instructions on how to complete the:
APPLICATION FOR DIVISION OF A
PUBLIC SERVICE SUPERANNUATION ACT PENSION
in accordance with the Pension Benefits Division Act
(PWGSC-TPSGC 2486)
Please read and follow these instructions carefully. Incomplete forms
will not be processed.
Complete this form by printing in block letters.
1. |
Write the plan member's surname
and given name(s). |
2. |
Date of birth: the day, month and year of birth
of the plan member. |
If you are the member's spouse or former spouse, provide the following information
if you have it.
If you are the member, you must fill out the following:
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3. |
Member's Identification Number:
the plan member's Personal Record Identifier (PRI), social insurance number
(SIN) or superannuation number. |
4. |
Address: the plan member's address in full. |
5. |
Date of Retirement (if applicable): the day,
month and year of retirement of the plan member (if the member is retired
from the public service). |
6. |
Current/Most Recent Public Service Employer:
the department, branch or division and the location of the plan member's
current or most recent public service employer. |
Section B - |
SPOUSE OR FORMER SPOUSE
OF PLAN MEMBER |
You must complete this section.
Print the surname, given name(s), social insurance number (SIN), and
the full address of the member's spouse or former spouse.
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Section C -
|
APPLICANT |
Place an "X" in the appropriate box. If you are
the applicant's representative, you must complete this application as if
you were the applicant but sign it in your own name on
behalf of the applicant. |
Section D - |
SUPPORTING DOCUMENTS |
Place an "X" in the box next to the documents that
you are submitting with this application.
You must include a certified true copy of the Court
Order or Spousal Agreement that provides for the division of
the plan member's pension benefits.
NOTE: If this document is missing, your application will be rejected
and returned to you.
You must include the Statutory Declaration, entitled
"In the Matter of an Application for Division of Pension Benefits
Information under the Pension Benefits Division Act " (PWGSC-TPSGC 2484),
duly completed, signed and witnessed if:
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1. |
MARRIED APPLICANT
1. |
The court order or spousal
agreement does not indicate dates for the period of cohabitation or
does not indicate interruptions in the period of cohabitation if there
were any. |
2. |
You are married but not divorced. |
You must include an original or certified true copy
of your Certificate of Marriage if you are not divorced.
|
2. |
NON-MARRIED APPLICANT
You were not married to one another, but have lived together for at least
one year, and have lived separate and apart for at least
one year.
|
IMPORTANT: |
You must submit, if
applicable, a certified true copy of the document that authorizes
a representative to act on behalf of the applicant. |
To facilitate the process, you may include, where applicable, the following
documents (check the appropriate boxes): |
1.
|
Instructions on how to direct pension benefits funds.
You must state in writing to which registered retirement vehicles you
wish the amount to be transferred (forms to that effect can be obtained
from the administrator of the registered retirement plans you have chosen).
|
2. |
Certified true copy of the Death Certificate
of the deceased member, or member's spouse or former spouse, if applicable. |
Section E - |
APPLICANT'S SIGNATURE |
Sign and enter the date. If you are the applicant's representative,
sign your own name on behalf of the applicant. |
NOTE: |
This guide is for information purposes only.
In the event of any discrepancies between the content of this guide and
the Pension Benefits Division Act and its associated regulations, the
latter will prevail.
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