Since 1990, Irvine & Associates has been providing the Ontario Legal Community with Pension Valuations for the purpose of Marriage Breakdown.
As the pension member, spouse, or lawyer for either party, the process involves two simple steps. Determining if a pension valuation report is needed, collection and submission of information.
Should you do a valuation?
1. Has the Employee been in the Pension for more than three years?
2. Is marriage for more than three years?
3. Are contributions with interest more than $5,000?If your answer is "yes" to all of these questions, then the difference between the value of the contributions with interest and the pension valuation should warrant the cost of having a valuation performed
To obtain a Pension Valuation!
1. Obtain the necessary information and complete a "Valuation Request" (Adobe PDF)2. Insure that all required information is provided then mail, fax or email both the request and the pension details to Irvine & Associates.
| Does this pension need to be valued? | See Step 1 above |
| How do I request a pension valuation? | See Step 2 above, or "Valuation Request" form |
| How long does it take to have a pension valued? | If you have sufficient information, a valuation report can be
provided in as little as two business days as "Expedited Service",
but the "Normal Service" timeline is ten business days. If you don't have sufficient information then the pension members authorization will be required and the information requested from the pension plan or employer. Naturally, we are unable to advise as to how long this information requesting process will take. |
| How much does it cost to have a pension valued? | Normal Service is $575 plus GST and Expedited Service
is $800 plus GST.
When both spouses have pensions to be valued and are submitted together for valuation, there is a combined price including a discount. Discount rate is $50 each when members are not in the same pension plan, and discount rate is $100 each when both members are within the same pension plan (e.g. both OMERS). |
| What will the pension valuation report look like? | Please review this sample report using MS Word. |
| In simple terms, how is value determined for the pension? | The present value of the pension is the sum of the present value of
each of the possible future payments from the pension to the member
using the amount of pension earned up to the date of separation.
Each future payment is factored for the probability of the member surviving to receive the payment, interest between the date of separation and the payment date, inflation between the date of separation and the payment date. This present value is checked against contribution rules for any possible refunds. This total present value at the date of separation may then be adjusted by the ratio of service (service at marriage to total service at separation) to reflect the benefit earned during marriage. This new amount is still before income taxes have been paid, so another adjustment is done to anticipate the after tax present value. |
| Part of the pension was earned prior to the marriage, how is this accounted for? | In accordance with Ontario Case Law (Best v. Best), the
present value at marriage is determined using the ratio of service.
The ratio of the service at marriage to the total service at separation
is used get a percentage of total benefits at marriage. For example, if the pension member had 4 years of service at the date of marriage and a total of 20 years at the date of separation, then 20% (ratio of 4 years to 20 years) of the total present value would be deducted as the value for the date of marriage. |
| Payment? | The payment for the report is required prior to the report being
released. Work begins on the file when data arrives and the client is informed of payment amount required and the expected timeline for the report being ready for release. The client is then informed when the report is ready for delivery if payment has not arrived by that time. In the case of "Express Service", a fax copy of the LAWYER payment cheque is required prior to release so that they pass in the mail. Other payment options may be available depending on your situation. |
| Area of Service? | Irvine & Associates works only for matters within the Province of Ontario, Canada. |
| Office Hours? | We are normally open Monday to Friday, 9am to 5pm. Lawyers are welcome to call anytime from 9am to 9pm as their file needs dictate. |