The heart is ageless. So is breaking up. Regardless of when they separate, de facto spouses must pay close attention to the matter of benefits accrued for retirement. Unlike couples who are married or in a civil union, they do not automatically have access to partition of the benefits accrued under a pension plan. Certain options are available, provided that you take the necessary steps in time and that both parties agree.
Are you recognized de facto spouses?
Each plan has its own definition of a de facto spouse. Before taking any steps, make sure you correspond to the definition provided by the plan concerned. This is an essential step in determining whether you are eligible for partition of the benefits accrued.
Québec Pension Plan (RRQ)
Recognized de facto spouses can apply for partition of employment earnings contributed to the
QPP at the time of their separation, according to certain conditions and within the prescribed timeframe. Partition does not result in an immediate payment, but may modify the amount of future pensions.
Supplemental pension plans (SPPs)
Recognized de facto spouses who are separating may decide to partition the benefits accrued under a
SPP. To do so, they must both agree to the partition and its conditions. The agreement must be written and concluded within 12 months of the separation.
Public-sector pension plans
Is one recognized de facto spouse or the other, or both, a member or members of a public-sector pension plan, such as the Government and Public Employees Retirement Plan (RREGOP) or the Retirement Plan of Management Personnel (PPMP)? If so, they can request partition of the benefits accrued under the plan or plans. In the year following the separation, they must come to an agreement and produce a written agreement, which they must sign before a notary or an attorney. Otherwise, they must formalize their agreement by joint declaration on oath.
Find out more and make a plan
A separation can have a long-term impact on your finances. If you are in this situation, consider consulting a financial planner to adapt your savings strategy to your new reality.
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