Pensions and marital breakdowns: information for lawyers

Lawyers are often asked to advise clients about dividing a pension benefit between a plan member and a former spouse. Learn more about the information and documents we need to administer a pension following a relationship breakdown.


Submit other applicable forms

There are several forms your client or their former spouse may need to submit, depending on their particular circumstances.

Authorization to release information

Form P1 Claim and request for information and notice should be sent to BC's College Pension Plan as soon as possible. This form is required before the pension administrator can provide any information to the former spouse, and it authorizes the plan to provide information to other parties, including legal counsel.

Once a complete, signed separation agreement, registered court order or Form P1 has been filed, the plan will notify a former spouse of actions taken by the member that affect the pension, such as applying to retire or transfer their pension as a lump sum.

Applying to become a limited member

Once the separation agreement or court order has been finalized, the former spouse of the plan member may apply to become a limited member of the plan by submitting:
 
  • Form P2 Request for designation as limited member
  • An administrative fee of $750 made payable to the College Pension Plan

As a limited member, the former spouse can apply for their proportionate share of the plan member's pension once the plan member has reached their earliest retirement age. We will not inform the former spouse of this date; it is their responsibility to apply for their benefit. They may be entitled to one of these payments options:

  • A lump-sum transfer of the commuted value   to a locked-in   retirement vehicle
  • A separate pension

As a limited member, the former spouse is entitled to receive certain information, including an annual benefit statement. If they become a limited member before the plan member retires, they are also entitled to name their own beneficiaries for their portion of the pension benefit.

Transferring the benefit entitlement

Form P4 Request by limited member for transfer or separate pension is used by a limited member to choose how to receive their share of benefits if the plan member is not yet receiving a pension. The limited member may choose to receive either a lump-sum commuted value transfer or a separate pension once the plan member reaches the earliest retirement age.

Waiving survivor benefits

Form P5 Waiver of survivor benefits after pension commencement may be used by a former spouse if the member has started receiving their pension and the former spouse is entitled to death (survivor) benefits from the pension.

  • Although the Family Law Act (FLA) allows the former spouse to use Form P5 to give up their survivor benefits so they can be paid to another person, BC Pension Corporation does not administer this form
  • If Form P5 is completed, the former spouse is independently responsible for paying the survivor benefits to the beneficiary named in the form

Withdrawing a claim

Form P7 Withdrawal of notice/waiver of claim is used in three ways by the former spouse (or, if the former spouse is deceased, their personal representative):

  1. To withdraw the notice from a specific form
  2. To withdraw a specific document
  3. To waive their claim and withdraw all forms and documents connected to that claim (including a court order submitted in support of a claim)

Note:

  • If the former spouse wishes to withdraw their claim to the pension, they must use Form P7. A new separation agreement, court order or Form P9 cannot override the original claim.
  • Once the pension has been divided and paid to the former spouse, a claim cannot be withdrawn. If a Form P5 or Form P7 is in place, it cannot be undone by another Form P7.

Updating personal contact information

Form P8 Change of information can be used by the former spouse to notify the plan administrator of any changes to their personal information. We don't require this form to update personal information: a letter, email or verified-identity phone call is also acceptable.

Submitting a form to divide the pension benefit

Form P9 Agreement to have benefits divided under part 6 is used in two cases:

  • If the member and former spouse do not have a formal agreement, this form allows them to divide their pension
  • If the member and former spouse have an agreement existing from before 1995, this form allows them to come under the Family Law Act

This form must not be filed by the member and former spouse if a complete, signed separation agreement or registered court order dividing the benefits already exits. This form cannot override either document; it can only apply if a separation agreement or court order is not in place or does not indicate how to divide the benefits.


  Print