In a marriage breakdown situation where family assets are being valued and/or divided, a member’s workplace pension entitlements are often the most significant asset. To settle the property issues, a member and his or her spouse may agree that the member will assign an interest in the member’s benefit to the spouse. Unfortunately, it is…
Tag: Pension Assignment
When is a Pension Assignment not an Assignment?
Pension plan administrators are often required to interpret the wording of court orders and separation agreements to determine whether there is a valid and effective assignment of an interest to a member’s former spouse. Until now, the courts have not provided clear guidance on what language is needed in order to create an assignment. On…
Pension Assignments Must be Clear and Unambiguous
On July 27, 2012, the Ontario Superior Court of Justice held that if a pension plan member wishes to assign an interest in his or her pension entitlement to a former spouse, the language of the separation agreement or divorce order must be clear and unambiguous. Since the language of the separation agreement and divorce…