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The Law in Ontario: Federal Government Employees

The federal government permits an immediate lump sum division of a member’s pension benefit under the Pension Benefits Division Act (for members of the Public Service Superannuation Act, the Canadian Forces Superannuation Act, RCMP, etc.). The Maximum Transferable Amount that is provided under the Pension Benefits Division Act (“PBDA”) is not the same as the Ontario family law value that is specified by Ontario’s Family Law Act. The Family Law Act in Ontario specifies that the value of a person’s pension on marriage breakdown must be calculated in accordance with the rules specified in the Ontario Pension Benefits Act, and as a result, the Maximum Transferable Amount provided by the federal government is not the correct value to assign to a member’s pension benefit on marriage breakdown.

Federal government employees need to have their pension valued by an independent actuary in accordance with the Ontario Family Law Act to determine the Ontario family law value. The Maximum Transferable Amount will be available to assist in equalizing the pension or other assets.

The Ontario family law value can be similar, much lower or much higher than twice the Maximum Transferable Amount.  It is not possible to know if a member/spouse is better off with the Ontario family law value without first requesting an estimate or a valuation.

We can provide our clients with a valuation of their federal pension under the law in Ontario.