Separation Agreements And Pensions

When a pension adjustment order is made by a court, it is served on the administrators of the pension plan of the spouse/life partner who make the necessary adjustments to the provisions of the plan in respect of that particular member. Pension plans are managed by administrators, who must manage the system according to the conditions set out in the trust and rules. Directors are not permitted to change the terms of the trust and make arrangements for a person who is not covered by the system, even if the member so invites. For example, the terms of a trust could provide for a member`s spouse as a survivor`s pension paid to the member`s lawful spouse, even though the member may have been separated for many years and have a second partner. The terms set out in a pension separation agreement may not be enforceable or legally binding on administrators. A separation agreement cannot deal with pension rights. Therefore, if a party wishes to apply for a pension allocation decision or a maintenance garnishment order, this issue can only be dealt with by order of the Tribunal. This only takes into account the value of the pensions you both established during your marriage or partnership. While pensions should not be shared, they should not be ignored in the decision to allocate assets. Pensions are often a couple`s most important capital after a home and can easily be overlooked….