Relationship Breakdown

If a member’s relationship ends, their pension benefit may be divided between them and their pension partner. This requires a family property order (FPO) to be filed with MEPP. An FPO will provide the details as to when and how a member’s MEPP benefit is to be divided, if at all. Members should consult their legal counsel about how to get and file an FPO. Members can also send a draft copy of the order to MEPP for review before submitting it, which can save them time and money if it needs to be changed. Please note, an FPO is the only acceptable document to divide a pension. A family property agreement is not acceptable.

Members who separate from their pension partner need to let Member Services know as soon as possible so that they can provide members with what they need to update their pension partner information.

Please note: completing a pre-retirement death benefit waiver does not prevent a member’s pension partner from seeking a division of their pension.

There are several things to know when it comes to members’ pensions and divorce or separation.

If a member separates or divorces, it is very important that they contact us as soon as possible.

It is suggested that members find an independent, professional representative who can give them legal advice about pension division and marital breakdown.

Pensions are considered family property, which can be divided. It is very important to note that not every separation or divorce results in a member's pension being divided. A member and their former partner can agree that other assets of equal value can cover anything owed, or they might agree not to divide anything at all, which would leave the member’s MEPP pension unaffected.

In order to divide a MEPP pension, MEPP requires a court-certified family property order (FPO) that complies with the Plan rules. Members will need to provide MEPP with a draft order to review so MEPP can follow the terms of the order.

Whatever a member and their former partner decide to do regarding the member’s MEPP pension, the member needs to let MEPP know as soon as possible.

In a separation or divorce, it may be necessary to determine the value of a member's pension. A MEPP member or their non-member partner can complete a Total Entitlement Estimate Request Form to receive a statement of the value of the MEPP pension benefit. The Total Entitlement Estimate is always sent to both parties. Contact us for information about the request form and how to submit it.

If the member or non-member partner is unable to use the request form, this request can also be made in writing and must contain the following information:

• the signature of the person requesting the estimate;
• the full names, current addresses, and current phone numbers of both the MEPP member and the partner;
• an estimated date for the end of joint accrual (this is normally the time the parties were married or living together). The end date must be either a date before the request, or the date of the request;
• if the request is from, or is to go to, a MEPP member's lawyer, an authorization form, included with the Total Entitlement Estimate Request Form, signed by the member allowing MEPP to share the estimate with that lawyer, is required; and
• if the written request is from, or is to go to, a non-member partner's lawyer, the non-member partner must sign an authorization allowing MEPP to share the estimate with that lawyer.

Adult Interdependent Partners:

Adult interdependent partners who do not otherwise meet the definition of pension partner are not eligible for a division of pension benefits. However, new rules allow the member adult interdependent partner to request information about the value of their pension benefit. These statements can be used to demonstrate the pension accrued during the period of interdependence. To request a statement, the member must submit a Total Entitlement Estimate Request Form or a written request  with the following information:

• the signature of the member;
• the full name, current address, and current phone number of both the MEPP member and the member’s adult interdependent partner;
• the beginning and end date of the period of interdependence. The end date must be either a date before the request, or the date of the request; and
• if the request is from, or is to go to, a MEPP member's lawyer, MEPP requires an authorization signed by the member allowing MEPP to share the estimate with that lawyer.

Please note: only the member adult interdependent partner may request this statement. A copy will not be provided to the member’s adult interdependent partner.

• Non-vested member: The partner’s share is a lump-sum payout of a portion of the member's contributions with interest. This can be paid as taxable cash or transferred to an RRSP.
• Vested member: The partner receives a share of the commuted value of the pension, which must be transferred to a Locked-In Retirement Account (LIRA).

Delayed Division

If a member is vested at the end of the period of joint accrual and is also within 10 years of turning 65 years of age, the non-member partner can choose to delay the calculation and distribution of the value of the pension benefits until the member:

• begins the MEPP pension;
• triggers a benefit payment by leaving the Plan;
• completes a transfer to another pension plan; or
• passes away.

This delayed division must be included in the FPO.

If the non-member partner is entitled to a division of monthly pension payments, these payments will be split according to the division outlined in the FPO. The spouse or partner’s share is limited to 50 per cent. The funds will be paid monthly and directly to the non-member partner. There is no option for a lump-sum payment.