Relationship Breakdown
Your pension is a family asset. If you and your Spouse or Common-law Partner end your relationship, the pension you earned during your relationship will be taken into account when your family assets are divided. Under Manitoba’s Pension Benefits Act, your Spouse or Common-law Partner is entitled to 50% of this pension.
A Spouse or Common-law Partner cannot legally waive the right to an asset unless the value of the asset is known. The value of your pension is available only from WCEBP; therefore, it is essential that you contact WCEBP if a breakdown has occurred, regardless of which of the options below you and your former Spouse or Common-law Partner decide to pursue.
To begin the process of determining the value of your pension, you or your former Spouse or Common-law Partner should submit a Division of Pension on Relationship Breakdown enquiry form. Upon receipt of this form, WCEBP will send both you and your former Spouse or Common-law Partner a statement showing the value of your pension benefit earned during the period of marriage or common-law relationship. This statement will also list your options and provide instructions for how to proceed.
You have three options if your relationship ends before you retire
Option
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How it works
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50/50 credit split
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The commuted value of your pension benefit will be prorated to determine the value of the benefit earned during your period of marriage or common-law relationship. Half of the prorated value will be transferred to your former Spouse or Common-law Partner. Funds must be transferred to a Locked-In Retirement Account (LIRA) or another registered pension plan, unless the amount falls under Small Pension rules. Corresponding reductions will be made to each year of your Credited Service, and to your contributions.
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Split the difference
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If your former Spouse or Common-law Partner also belongs to a pension plan, you may split in half the net difference between your pension benefit and your former Spouse or Common-law Partner’s. In this scenario, only the higher value pension is adjusted. Credited Service and contributions are reduced, and a commuted value representative of the reduction is then transferred to the individual with the smaller pension. Funds must be transferred to a Locked-In Retirement Account (LIRA), unless the value of the net difference falls under Small Pension rules.
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Opt out
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If both you and your former Spouse or Common-law Partner agree, you may opt out of dividing your pension benefit by submitting a written agreement to the Program. The agreement must acknowledge
- each party entered into it voluntarily,
- both received independent legal advice, and
- both received a statement from the Program showing the value of your pension benefit earned during the period of marriage or common-law relationship.
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Note: While your Credited Service is reduced under Option 1 and Option 2, your eligibility service is not affected. This reduces the amount of your pension at retirement, but does not affect when you qualify for unreduced early retirement benefits.
You have two options if your relationship ends after you retire
Option
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How it works
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50/50 credit split
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Your former Spouse or Common-law Partner will receive a lifetime pension from the Pension Plan equal to one-half of the portion of the pension you earned during your marriage or common-law relationship. Your pension will be reduced by this amount.
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Opt out
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The mandatory division of your pension benefit may be waived if you and your former Spouse or Common-law Partner both agree to it in writing. The agreement must acknowledge
- each party entered into it voluntarily,
- both received independent legal advice, and
- both received a statement from the Program showing the value of your pension benefit earned during the period of marriage or common-law relationship.
If waived, your former Spouse or Common-law Partner would continue to be entitled to the survivor benefit chosen at retirement if you predecease him/her.
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