In the event that your marriage or relationship of a conjugal nature breaks down, it is important to understand the possible impact on your pension and insurance benefits plans. The following information outlines the potential consequences to your plans.
Whom should you inform in the event of your separation or divorce?
You should inform the Government of Canada Pension Centre in the event of a Separation or Divorce. Please send copies of the following documents:
Please include your pension number on all documents. If you don't know your pension number, include your Personal Record Identifier (PRI) instead.
Can your pension benefits be divided in the event of divorce or separation?
Yes. The Pension Benefits Division Act provides for the division of the pension benefits that you have accumulated under the public service pension plan in the event of your marriage or common-law relationship breakdown.
Who is eligible for a division of pension benefits?
You or your spouse/common-law partner may apply after you have been separated for at least one year. However, if the application is based on a Court Order pertaining to divorce, annulment or separation, then the one-year separation requirement does not apply.
In the case of a common-law relationship, an application may be made only if your relationship lasted a minimum of one year.
In either case, you must have a Court Order or written agreement signed by you and your spouse that provides for the division of your pension benefits.
What steps are involved in obtaining a division of pension benefits?
Either you or your former spouse/common-law partner may apply for a pension benefits division.
Step 1: Request information on pension benefits division.
Before you submit your request for an estimate, consult the Request for Estimate section for more information on the number of estimates you can receive per period of 12 months and which documents and forms are required. If you want an estimate of the division amount before you apply for a division, you must submit the Request for Pension Benefits Division Information form, along with any other required documents.
Step 2: Apply for pension benefits division.
You must submit the Application for Division of a Public Service Superannuation Act Pension form, along with your Court Order or written agreement, and any other required documents.
Step 3: Division of pension benefits.
Once the division is approved, the amount representing the value of the benefits earned during the period subject to division is transferred into a chosen registered retirement savings account(s).
These steps are described in further detail in the Division of Pension Benefits Package. Additional information is found under the Pension Benefits Division Act and the Pension Benefits Division Regulations.
How does a pension division affect your pension?
When you are in receipt of a pension, your pension will be reduced immediately upon completion of the division.
How are your survivor benefits affected?
If at the time of your death you were divorced, your former spouse will not be entitled to a survivor benefit.
If at the time of your death you were separated from your common-law partner, that partner's entitlement to a survivor benefit ends immediately upon separation and therefore, will not be entitled to a survivor benefit.
However, if at the time of your death you were separated from your legal spouse but not divorced, your spouse would be entitled to Survivor Benefits. However, if you were separated from your legal spouse and your former spouse had applied for a division of pension benefits, your former spouse would only be entitled to a survivor benefit in respect of the portion not covered by the division.
For more information, consult the Survivor Benefits section of the Treasury Board of Canada Secretariat Web site.
How is your Supplementary Death Benefit Plan (SDB) affected?
There is no impact for Supplementary Death Benefit purposes. However, your former spouse will still be entitled to receive your SDB benefit if you have named this person as your beneficiary.
To designate a new beneficiary, you must complete a new Naming or Substitution of a Beneficiary form.
Does your Will affect who receives your Supplementary Death Benefit (SDB)?
Wills, Agreements and Court Orders do not affect who receives your death benefit.
The person you named as your beneficiary for the SDB Plan receives your death benefit. You can only name one beneficiary under this plan. If you wish to divide your death benefit among two or more people, you must name your estate as the beneficiary. You may then specify in your Will how it should be divided.
If you don't remember whom you named as the beneficiary of your Supplementary Death Benefit (SDB), how do you find out who it is?
For information about your beneficiary, please write or call the Government of Canada Pension Centre. Please note that the Pension Centre will ask you for your pension number or Personal Record Identifier (PRI).
Should you inform the Government of Canada Pension Centre if the person you've named as the beneficiary of your Supplementary Death Benefit (SDB) moves?
Yes, you should notify the Government of Canada Pension Centre when your beneficiary moves. In the event of your death, if the Pension Centre has a current address for your beneficiary, the benefit can be paid more quickly.
When you contact the Government of Canada Pension Centre, please have the following:
How are your insurance benefit plans affected?
Once you become divorced, your former spouse is no longer eligible for benefits under the following plans:
In the event there is a change in your relationship status such as a divorce or separation, you may wish to consider changing your Public Service Health Care Plan (PSHCP) coverage from Family to Single if there are no other dependants for whom PSHCP benefits are being provided.
Amending your coverage type can be accomplished by completing and submitting either an electronic application using the secure online Public Service Health Care Plan Web Application on the Compensation Web Applications (CWA) or, if you do not have access to CWA, you can complete and submit a paper application form (www) to your designated compensation advisor.
Once your coverage status has been updated you must then update your positive enrolment information with Sun Life. Changes can be made by visiting the Sun Life Web site. Alternatively, if you completed your positive enrolment on paper, changes can be made by completing the Positive Enrolment Change Form that was sent with your confirmation letter from Sun Life.
While the finalization of a divorce results in the automatic ineligibility of PSHCP claim payments on behalf of the divorced spouse, PSHCP benefits can continue if you are separated from your spouse or common-law partner.
How is your Public Service Management Insurance Plan (PSMIP) affected?
Any dependant's coverage ends once you become divorced. However, your former spouse will still be entitled to receive PSMIP benefits resulting from your death if you have named that person as your beneficiary.
To designate a new beneficiary, you must complete a new Public Service Management Insurance Plan form.