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HOOPP

Relationship Changes and Your Pension

Relationship Changes and Your Pension

Relationship Changes and Your Pension

Members Life Changes Relationship Changes

Over the course of your career you may experience a lot of change – professionally and personally. If you have a change in your relationship status you may be wondering how it affects your pension and how to notify HOOPP of this change. Whether you’re getting married, entering a common-law relationship or have questions about pension and divorce, we’re here to help answer any questions you have. 

If you change your relationship status and need to update your personal information, be sure to call HOOPP Member Services to let us know.

Relationship changes prior to retirement

How could changes in my relationship status impact what I leave to my loved ones?

As you build your pension benefits throughout your career, it’s important to know what will happen to it if you were to pass away. Your relationship status at the time of your passing influences who is able to receive survivor benefits. 

Getting married or becoming common-law

If you get married or are in a common-law relationship, your new spouse automatically becomes your qualifying spouse by law. This means he or she will receive spousal benefits when you pass away. When you retire, your qualifying spouse remains your beneficiary for any benefits payable upon your death, even if you later divorce, separate from your common-law spouse, or remarry. 

Learn more about Survivor Benefits if you pass away before retirement.

Ending a spousal relationship

If you end a spousal relationship and become single prior to retirement, the beneficiary(s) you designate will be entitled to your pension benefits when you retire. Learn more about how to designate a beneficiary.

Dividing your pension assets

Ending a spousal relationship can be life-changing and choosing whether to divide your pension assets is an important decision. To begin this decision-making process, you may be required to obtain a valuation of your pension benefits (known as a Family Law Valuation).

relationship-changes-infographic
1

Seek independent legal advice

Please consult a family law lawyer before making any decisions regarding your pension. HOOPP can provide the information you need to make an informed decision, but cannot provide you with legal or financial advice.

2

Apply for a family law valuation

If your spousal relationship has ended, you and your former spouse may need to obtain the value of the pension assets accrued during the period of the relationship before dividing your family property. In order to determine the value of your pension assets, you need to receive a Family Law Valuation statement. To receive this statement, please complete an Application for Family Law Value (Family Law Form FL-1) and send it to HOOPP.

 

Please note

It may be necessary for HOOPP to contact your employer(s) for information to prepare a Statement of Family Law Value.

3

Receive your Statement of Family Law Value from HOOPP

HOOPP will send you and your former spouse a Statement of Family Law Value within 60 days of receiving a completed Application for Family Law Value. This document details the value of pension assets accrued during the relationship and the maximum amount that HOOPP can be directed to pay your former spouse if your pension is divided.

4

Decide how or whether to divide your pension assets

Once you receive the Statement of Family Law Value from HOOPP, you and your former spouse will need to decide if your pension will be divided. 

If you and your former spouse choose to divide your HOOPP pension, your former spouse must complete and send to HOOPP a Spouse's Application for Transfer of a Lump Sum (Family Law Form FL-5) or a Spouse's Application to Divide a Retired Member's Pension (Family Law Form FL-6).

For more information

You can find more information about how your pension would be valued and divided in case of marriage breakdown by visiting FSRA's guide: Pensions and Marriage Breakdown - a Guide for Members and their Spouses.

Important
These documents must be accompanied by a certified or notarized copy of a finalized court order, domestic contract (e.g. separation agreement) or family arbitration award and any other required documents. Please proceed to Step 5 and Step 6 if you choose to divide your pension assets.

5

Your former spouse will receive payment

This step is only required if you and your former spouse choose to divide your pension. If you and your former spouse choose to divide your pension and HOOPP receives a completed application and the required supporting documents, your pension will be divided and a portion of your benefits will be transferred to your former spouse.

If you were not yet receiving a pension on your Family Law Valuation Date (separation date used), your former spouse will receive a one-time lump sum payment that they can transfer to one of the following retirement savings vehicles: a locked-in retirement account (LIRA), a life income fund (LIF) or a registered pension plan (if the plan will accept the transfer).

If you were retired and receiving your HOOPP pension on or before your Family Law Valuation Date, your former spouse will receive his/her portion of your pension on a monthly basis for your lifetime.

 

6

Expect an adjustment to your HOOPP pension

After your pension has been divided, HOOPP will adjust your remaining benefits to account for the amount that was paid to your former spouse.

If you have terminated your membership and are entitled to a deferred pension, or if you are retired and receiving a pension, your benefits will be adjusted immediately.

If you are actively contributing to HOOPP and/or have not terminated your membership in the Plan, your record will be adjusted on the date you terminate your membership, and:

  • elect to retire,
  • defer your pension, or
  • transfer the commuted value of your pension to another retirement savings vehicle.

New spouse after retirement

If you get married or remarry during your retirement, and were single or your qualifying spouse is no longer living at your date of retirement, you may be able to provide your new spouse with a HOOPP survivor pension upon your death. If you choose to provide your new spouse with a survivor pension, an actuarial reduction will be made to your pension to reflect the cost of providing this additional benefit. The reduction will be based on your age and the age of your spouse at the time the choice is made. 

Learn more about Survivor Benefits after retirement. 

This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.