The breakup of a marriage or civil union can have an effect on benefits accrued in a public-sector pension plan (PSPP).
Partition of Accrued Benefits
Benefits accrued in a PSPP during a marriage or civil union are part of the family patrimony. The value of these benefits can be partitioned after a legal separation, divorce, annulment of marriage, payment of a compensatory allowance, or dissolution or annulment of a civil union, unless the spouses renounced this right or are not subject to the rules governing family patrimony.
When de facto spouses break up, they can request the partition of benefits accrued in certain PSPPs. Spouses who want their accrued benefits to be partitioned between them must produce a written agreement to that effect within 12 months after they stop living together. The agreement must be signed by both spouses before a notary or lawyer, or made as a joint sworn declaration.
De facto spouses who stopped living together after August 31, 1990 but before January 1, 2019 have 12 months as of the latter date to produce a written agreement stating that they wish to partition their accrued benefits. In order to partition accrued benefits, they must:
- obtain the value of the accrued benefits
- request the payment of the value of the benefits
Value of Accrued Benefits
To find out the value of accrued benefits, request a statement of benefits (Demande de relevé de droits) from Retraite Québec. Only the statement of benefits can tell you the total value of the benefits accrued in one or more PSPPs, and the value of the benefits accrued during your marriage or civil union. The statement also indicates the amount of the reduction applicable to the contributor’s pension if partition is carried out.
Before requesting a statement of benefits, married or civil union spouses must do one of the following:
- institute proceedings for legal separation, divorce, annulment of marriage, payment of a compensatory allowance, or dissolution or annulment of civil union
- or, enter into family mediation with an accredited mediator, or a joint action toward the dissolution or annulment of their civil union by a notary
Usually the court awards the spouse 50% of the value of benefits accrued before the marriage or civil union. However, the law allows the court to award up to 50% of the total value of benefits accrued during all the years of contribution to the plan.
For de facto spouses, partition cannot exceed 50% of the value of benefits accrued during all the years of contribution to the plan.
Payment of the Value of Benefits
Payment of the value of benefits is not automatic.
For married or civil union spouses, once the Court has ordered partition or the civil union has been dissolved by notarial act, payment of the value of benefits may be requested by either spouse or his or her representative (lawyer, notary or accredited mediator).
For de facto spouses, the person who contributes or contributed to a PSPP (or his or her spouse) can send an application for payment to Retraite Québec, accompanied by the written agreement as to partition.
Effect of the Partition of Benefits
The partition of benefits will result in a permanent reduction in the amount of the pension benefits received by the contributor.
To learn more, see the brochure La rupture de la vie à deux (in French only).
This information is addressed to:
- married or civil union spouses who wish to partition the benefits accrued in a PSPP after a legal separation, divorce, annulment of marriage, payment of a compensatory allowance, or dissolution or annulment of a civil union, unless the spouses renounced this right or are not subject to the rules governing family patrimony
- de facto spouses who meet the following requirements:
- they lived together as a couple for at least 3 years, or at least 1 year if a child was born or will be born of their union or was adopted
- they concluded a written agreement on the partition of benefits within 12 months after the date of their breakup
Note
With some pension plans, special considerations apply to be recognized as de facto spouses.
Restrictions
The rules of partition of family patrimony do not apply to the following:
- married spouses who, before May 15, 1989, ceased living together and settled the financial consequences of their separation in writing or otherwise, except if they resumed living together
- married spouses who, before May 15, 1989, applied for divorce, legal separation, annulment of marriage or payment of a compensatory allowance
- spouses married before July 1, 1989 who signed a notarial deed before January 1, 1991 excluding themselves from the partition of family patrimony
- married and civil union spouses who renounced their right to partition of family patrimony by notarial deed or joint judicial declaration during the process of a divorce, legal separation, marriage annulment or dissolution or annulment of civil union
The regulatory amendments allowing the partition of benefits accrued in a PSPP when de facto spouses break up came into force on January 1, 2019.
The provisions of the Civil Code of Québec that concern family patrimony came into force on July 1, 1989.
