Pension Diversion Regulations (SOR/84-48)

9 Where a recipient’s pension benefit consists of both a lump sum payment and periodic payments and the lump sum payment is payable at the same time as any periodic payment, the amount to be diverted from the recipient’s net pension benefit shall be governed by the following rules:

• (a) where the relevant financial support order provides only for a lump sum payment, the amount specified in the order shall first be satisfied out of the lump sum portion of the recipient’s net pension benefit in accordance with section 36 of the Act as if the recipient’s pension benefit consisted only of a lump sum payment and, if any amount thereof remains unsatisfied, that amount shall be treated as a new lump sum payment to be satisfied in accordance with section 37 of the Act as if the recipient’s pension benefit consisted only of periodic payments;

• (b) where the relevant financial support order provides only for periodic payments, the payments shall be satisfied out of the periodic payments of the recipient’s net pension benefit in accordance with section 36 of the Act as if the recipient’s pension benefit consisted only of periodic payments; and

• (c) where the relevant financial support order provides for both a lump sum payment and periodic payments, the lump sum payment portion shall be satisfied out of the lump sum payment portion of the recipient’s net pension benefit in accordance with section 36 of the Act as if the recipient’s pension benefit consisted only of a lump sum payment and the periodic payments shall be satisfied out of the periodic payments portion of the recipient’s net pension benefit in accordance with section 36 of the Act as if the recipient’s pension benefit consisted only of periodic payments.

• 9.1 (1) In this section, applicant’s proportionate share means, in respect of an applicant, the quotient obtained by dividing the amount specified in the financial support order of the applicant by the sum of the amounts specified in the financial support orders accompanying the two or more duly completed applications for diversion referred to in subsection (3) or (4).

• (2) This section applies where two or more duly completed applications for diversion of a recipient’s net pension benefit are received before a diversion is made or where a diversion of a recipient’s net pension benefit is being made and another duly completed application for diversion of the pension benefit is received.

• (3) Where two or more duly completed applications for diversion of a recipient’s net pension are received and the portion of the recipient’s net pension benefit subject to diversion pursuant to sections 36 to 40.1 of the Act is, in respect of each applicant, the same, the amount of the net pension benefit to be diverted to each applicant shall be that portion of the net pension benefit multiplied by the applicant’s proportionate share, to a maximum of the amount specified in the financial support order of the applicant.

• (4) Where two or more duly completed applications for diversion of a recipient’s net pension benefit are received and the portion of the recipient’s net pension benefit subject to diversion pursuant to sections 36 to 40.1 of the Act is not, in respect of each applicant, the same, the amount of the net pension benefit to be diverted to each applicant shall be

  • (a) if the sum of the amounts specified in the financial support orders accompanying the applications is equal to or less than the net pension benefit, an amount equal to the amount that would be diverted to that applicant had that applicant been a sole applicant under the Act; or

  • (b) if the sum of the amounts specified in the financial support orders accompanying the applications is greater than the net pension benefit, the net pension benefit multiplied by each applicant’s proportionate share, to a maximum of the net pension benefit that would be diverted to that applicant had that applicant been a sole applicant under the Act.

• (5) Where the amount of the recipient’s net pension benefit to be diverted to an applicant pursuant to paragraph (4)(b) is less than the maximum referred to in that paragraph, the amount, not to exceed that maximum, to be diverted to that applicant shall be equal to

  • (a) the amount diverted to that applicant pursuant to paragraph (4)(b); and

  • (b) the amount of the difference, if any, between the sum of the amounts to be diverted to each applicant from that net pension benefit pursuant to paragraph (4)(b) and the net pension benefit subject to diversion pursuant to sections 36 to 40.1 of the Act.

10 The notification referred to in paragraph 39(1)(b) of the Act may be sent by mail, registered mail or any means of electronic communication.

10.1 The copy of a varied financial support order referred to in subsection 39(5) of the Act shall be a certified copy unless it is submitted by a provincial enforcement service.

Applications for Variation or Termination

• 11 (1) An application, pursuant to subsection 41(1) of the Act, for a variation in the amount being diverted with respect to a diversion may be made on the grounds that

  • (a) the financial support order or the statement of arrears of maintenance, alimony or support on which the diversion is based has been varied or replaced by another financial support order or statement of arrears, as the case may be, that would result in a change in the amount to be diverted as calculated in accordance with the Act and these Regulations;

  • (a.1) a statement of arrears of maintenance, alimony or support has been submitted that would result in a change in the amount to be diverted as calculated in accordance with the Act and these Regulations;

  • (b) there has been a change in the applicant’s or recipient’s habitual residence and that change would result in a change in the amount to be diverted as calculated in accordance with the Act and these Regulations;

  • (c) there is a change in the status of a person on whose behalf diversion payments are being made to another person;

  • (d) there is a change in a condition of payment specified in the financial support order on which the diversion is based that changes the amount to be paid pursuant to the order; or

  • (e) a written request for a reduction in the amount being diverted has been made by and signed by the applicant or the person or provincial enforcement service to whom diversion payments are being made for the benefit of the applicant.

• (2) An application, pursuant to subsection 41(1) of the Act, for termination of a diversion may be made on the grounds that

  • (a) there is a change in a condition of payment specified in the financial support order on which the diversion is based that has the effect of terminating the order;

  • (b) the order is terminated, rescinded or nullified by another order or a judgment of a court; or

  • (c) a written request to terminate the diversion has been made by and signed by the applicant or the person or provincial enforcement service to whom diversion payments are being made for the benefit of the applicant.

• (3) An application referred to in subsection (1) or (2) shall be signed by or on behalf of the applicant or recipient and shall contain

  • (a) a written request for a variation in the amount being diverted or for termination of the diversion, as the case may be,

  • (b) sufficient information to enable the Minister to identify the applicant and recipient,

  • (c) a statement of the grounds for the application, and

  • (d) written evidence of the facts alleged concerning the application sufficient to permit the Minister to ascertain the truth of the facts.

Prescription of Deductions from Pension Benefits

12 For the purposes of the definition net pension benefit in subsection 32(1) of the Act, the prescribed deductions shall be

• (a) any arrears of income tax required to be retained pursuant to section 224.1 of the Income Tax Act and any amount required to be withheld as income tax in relation to a recipient domiciled outside of Canada or in relation to a lump sum payment;

• (b) any amount deducted from the recipient’s pension benefit for instalments being paid in respect of elective service and deficiencies in pension contributions for current or elective service;

• (c) any amount deducted from the recipient’s pension benefit pursuant to an Act of Parliament, but not including

  • (i) income tax, other than the income tax deduction set out in paragraph (a), and

  • (ii) any pension diversion made pursuant to Part II of the Act;

• (d) any amount deducted from the recipient’s pension benefit as a premium payment for a health care or hospital insurance plan;

• (e) any amount deducted from the recipient’s pension benefit as a premium payment for a group life insurance plan listed in Schedule I; and

• (f) any amount deducted from the recipient’s pension benefit for supplementary death benefit contributions or shortages of such contributions.

Prescription of the Time for Filing and the Information To Be Contained in an Annual Statement

13 A written statement referred to in subsection 37(3) of the Act shall

• (a) be filed within 30 days after the anniversary date of the commencement of the diversion payments;

• (b) contain information as to whether or not, to the knowledge of the applicant,

  • (i) the financial support order has been replaced or varied by any other order,

  • (ii) the financial support order has been satisfied by the diversion payments made, by any other means or by any combination thereof, and

  • (iii) the conditions of payment in the financial support order, if any, are still applicable; and

• (c) be witnessed by a person who knows the applicant.

Application for Information Under Section 35.3 of the Act

14 An application under section 35.3 of the Act shall be made in the form set out in Schedule II and be accompanied by a copy of the financial support order, which shall be a certified copy unless the application is made by a provincial enforcement service.

15 If a person or provincial enforcement service who makes an application referred to in section 35.3 of the Act is unable to provide the plan member’s date of birth but provides other information sufficient to enable the Minister to identify the plan member within a reasonable time, the requirement that the application contain the plan member’s date of birth shall be waived.

16 An application referred to in section 35.3 of the Act shall be sent to

• Minister of Public Works and Government Services
• Government of Canada Pension Centre – Mail Facility
• 150 Dion Boulevard
• P.O. Box 8000
• Matane, Quebec G4W 4T6.

17 If an application is made under section 35.3 of the Act, the Minister shall provide the following information to the person or provincial enforcement service making the application:

• (a) the date on which the plan member ceased to be employed in the public service of Canada, ceased to be required to make contributions under the Canadian Forces Superannuation Act or ceased to be a participant under subsection 5(1) of the Reserve Force Pension Plan Regulations, as well as the period of pensionable service to the credit of the plan member;

• (b) the date of birth of the plan member;

• (c) whether the plan member is, at the time of the application, eligible to exercise an option for a benefit under the Public Service Superannuation Act, the Canadian Forces Superannuation Act or the Reserve Force Pension Plan Regulations;

• (d) whether the plan member has made such an option and, if so, the details of the option;

• (e) if the plan member has not exercised such an option, the last day for exercising that option;

• (f) the amount of the deferred annuity that the plan member would be entitled to receive;

• (g) the annual allowance that the plan member would be entitled to receive had the member made an option for that benefit on the date of providing the information; and

• (h) the date on which the information is provided.