DEPARTMENT OF LABOUR AND IMMIGRATION
PENSION COMMISSION UPDATE NO. 7
This update has no legal authority. The Pension
Benefits Act of Manitoba and The Pension Benefits Regulation, 188/87 R
amended should be used to determine specific requirements.
Revised January 2002
Reference: The Pension Benefits Act Section 31(6), Regulation
205/92
On June 24, 1992, amendments to the Act were enacted to allow spouses
or common-law partners to opt-out of the mandatory pension benefit
credit splitting requirement.
More specifically, the amendment stipulates that where both spouses
or common-law partners:
- receive independent legal advice and
- receive specified financial information about the pension
benefit(s) from the plan administrator, they may enter into a
written agreement with each other to the effect that the pension
benefit credits shall not be divided between them.
This agreement
must be in form and
content as the Minister may by Regulation prescribe.
The form must be completed and signed by each spouse or common-law
partner in the presence of their respective lawyers. Upon completion, a
copy must be filed with the plan administrator(s).
This opt out provision is available to spouses or common-law partners
who separated on or after June 24, 1992 and to spouses or partners who
separated before June 24, 1992 who have not yet finalized either the
transfer of entitlements to locked-in RRSPs, or the division of pension
in payment.
Where mutual agreement cannot be obtained, the mandatory splitting of
pension benefits credits is applicable in accordance with Section 31(2)
of the Act.
|