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DIVIDING CANADA PENSION PLAN CREDITS
The following information was obtained from the department of Human Resources Development Canada. The department handles all inquiries about the Canada Pension Plan as a public service, and processes the credit division applications. You should call the department for current updates, and any further information you require. Its toll-free telephone number is 1-800-265-9480. If you encounter any dif culty, our of ce will be glad to assist in facilitating your inquiries or application, but in the ordinary course it is not necessary for us to be involved. You will nd the staff at Human Resources knowledgeable and helpful.
All persons who work in the paid labor force for another employer or for themselves contribute to the Canada Pension Plan. These contributions earn credits having a value based on the amount paid into the Plan and the length of time over which the contributions are made. The credits are used to determine the amount of future Canada Pension bene ts. These include:
• Retirement pension
• Disability bene ts
• A lump-sum death bene t
• A widowed spouse’s pension
• Bene ts for children of disabled or deceased contributors
The pension credits accumulated by one or both parties during a marriage or common-law relationship may be shared. This sharing is based on the premise that both parties contributed to their economic well being during the time they lived together, even if one of them was not working at paid employment. The application for sharing can be made notwithstanding that the applicant has entered into a new relationship.
When an application for division is accepted, the credits earned by each party are added together and split into two equal shares. Each spouse’s Canada Pension Plan account is then credited with one of the shares. This could result in making the Applicant eligible to receive bene ts for which he or she would not otherwise qualify, or increase the amount of bene t.
To be eligible for division of credits, the applicant and other party:
• if married, must have lived together in their marriage for at least 12 consecutive months; and
• been separated for at least 12 consecutive months; or
• been divorced or had their marriage annulled;
• if living in a common-law relationship, must have lived together in that relationship for at least 12
consecutive months, and has been separated for at least 12 consecutive months.
In the case of divorce or annulment, there is no time limit on when the application for division can be made.
In the case of separation in a marriage, there is no time limit to apply following a separation except in the event of death of one of the separated spouses. In the event of death, the application must be made within three years of the death.
In the case of separation from a common-law relationship, the application must be made within four years from the date of separation.
The application for a division of pension credits may be made by either party to the relationship.
For more information, or to obtain application forms, call the Minister of Human Resources Development Canada at the toll-free number given above.
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